Indian steel producer Tata Steel Limited plans to increase the share of value-added steel products in its portfolio to 60%, aiming to reduce exposure to volatile commodity steel pricing and raw material costs.
According to CEO T. V. Narendran, the company is expanding its downstream presence across:
- Galvanized steel
- Packaging steel
- Steel tubes
- Wire products
Tata Steel is also targeting approximately $738 million in cost transformation savings during FY2026–27 through digitalization initiatives and AI-driven operational efficiencies.
As part of its expansion strategy, the company recently acquired the remaining stake held by BlueScope Steel in their coated steel joint venture and is adding a new hot rolled galvanizing line at Tarapur.
In addition, Tata Steel plans to expand packaging steel capacity by approximately 300,000 mt annually.
Currently, value-added products account for around 35–40% of the company’s portfolio. The strategy is intended to reduce reliance on more volatile commodity segments such as hot rolled coils and construction steel.
Narendran also noted that improving global market balance and easing Chinese export pressure are helping support steel pricing conditions.
According to the company:
- Chinese steel prices have increased by $20–25/mt in recent weeks
- Chinese exports have moderated from 11–12 million mt/month to 9–10 million mt/month
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