Tata Steel Commissions first phase of its greenfield plant

Yesterday, Tata Steel commissioned its first phase of 6 million tonnes per annum (MTPA) plant at Kalinganagar in the state of Odisha. The commissioned steel plant's first phase constitutes 3 MTPA. The Kalinganagar steel plant is the largest single location greenfield steel project in India. The plant will produce flat, lighter, higher tensile strength steel and will increase the production capacity of the company in India to 13 MTPA.

Tata Steel made an investment of Rs 22000 crore in the first phase of the greenfield plant. The company started the commission of the hot strip mill and coke oven but the blast furnace, sinter plant and steel smelting shop are yet to be completed. The plant will utilize raw materials from its company's twin wagon tippler which will unload a capacity of 20 MTPA.

The commissioned plant has India's largest blast furnace at 4330 cubic meter with production capacity of 3.2 MTPA. The company's new plant will use the most advanced carbon health technology. It will also generate 202 MW power through gases discharged by the coke oven and blast furnace.

The steel delivery of Tata Steel remained flat with 6.33 million tonnes (MT) in Q2FY16 as compared to the previous quarter. However, the company's steel deliveries declined by 2.55 per cent to 12.62 MT in H1FY16 on yearly basis.

Tata Steel is keen to expand its portfolio to high-grade flat products for ship building, defence equipment,energy & power, infrastructure building, aviation and lifting & excavation. The expansion will reinforce its leadership in domestic automotive segment. Tata Steel's Kalinganagar plant will enhance the future competitiveness in terms of cost competitiveness and profitability. The investment of the company is quite aligned to the Government's, Make in India strategy.

Tata Steel's shareholding pattern indicates that FII holdings contracted by 57 basis points to 11.79 per cent and DII holdings also contracted by 281 basis points to 25.94 per cent during the September 2015 quarter. The share price of the company increased by 1.37 per cent on bourses in early trades and is trading at Rs 227.2 on intraday basis.

Tata Steel is among the top global steel companies with an annual crude steel capacity of nearly 30 MTPA. The company is the  world's second most geographically diversified steel producer with operations in 26 countries and commercial presence in over 50 countries.The Company is in the manufacturing of steel and steel products. Its products include hot rolled coils, cold rolled coils, wire rods and rebars, and galvanized coils. Tata Steel earns from segments viz. steel, ferro alloys and minerals. The Company's other business segments consists of tubes, bearings, refractories, pigments, port operations and town services, among others.