Tata Steel Long rallies ~3% on commencing production at Neelachal Ispat Nigam

4 Oct 2022 , 02:38 PM

Tata Steel Long Products (TSLP) marked a significant milestone by restarting the Blast Furnace at its subsidiary, Neelachal Ispat Nigam Ltd (NINL), barely 90 days after the purchase was completed on July 4, 2022.

The quick restart demonstrates Tata Steel's dedication to the site, the underlying strength of the existing assets, and the facility's significance to Tata Steel's strategy, said the company in its press release.

Tata Steel has announced that it intends to increase its long-products capacity in India in response to predicted increases in demand driven by infrastructure construction, government investment, and retail housing spending.

Tata Steel already has category-leading brands like Tata Tiscon in its portfolio, as well as a large pan-India retail and distribution network. It has announced intentions to invest in the NINL site over the next few years to develop a dedicated 4.5 million tonnes per year state-of-the-art long goods complex.

Given the close proximity to Tata Steel's current facility in Kalinganagar, considerable synergies in terms of shared infrastructure, resources, and management are possible.

At around 2.36 PM, Tata Steel Long was trading 2.67% higher at Rs618.15, against previous close of Rs602.05 on NSE. So far, the counter hit intraday high and low of Rs622 and Rs610.20 respectively.

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