I. Overview
The objective of this report is to convey the Managements peRspective on the external environment and steel industry, as well as strategy, operating and financial performance, material developments in human resources and industrial relations, risks and opportunities and internal control systems and their adequacy in the Company during the FY2024-25. This Report should be read in conjunction with the Companys financial statements, the schedules and notes thereto and other information included elsewhere in the Integrated Report and Annual Accounts 2024-25. The Companys financial statements have been prepared in accordance with Indian Accounting Standards (‘Ind AS) complying with the requirements of the Companies Act, 2013, as amended and regulations issued by the Securities and Exchange Board of India (‘SEBI) from time to time.
II. External Environment
1. Global Economy
In 2024, the global economy grew at a rate of 2.8%, with regional disparities. Despite positive trends like reducing inflation and monetary easing in several countries, geopolitical risks around trade policy uncertainty, and ongoing conflicts continued to weigh on global economic sentiment. The economy globally is projected to continue to grow in 2025. While there is a reducing intensity in tariffs globally, developments in this area including trade agreement between major blocks like United States of America, United Kingdom, European Union, China among Others, and a ceasefire deal between Russia and Ukraine will be key factors impacting the economic activity.
Economic Outlook
The global economy is expected to grow by 2.3% in 2025. The tension around trade and high levels of policy uncertainty are expected to have a significant impact on the economic activity.
Global inflation is expected to moderate to 4.3% in 2025 and 3.6% in 2026, approaching central bank targets. While advanced economies are likely to contain inflation more effectively than emerging markets, rise in protectionism and geopolitical tensions around trade will significantly impact prices of domestic products especially in United States. Infiation in the services section in major economies like the United States and the Europe is expected to remain above pre-pandemic levels. The monetary policy remains divergent, with some central banks maintaining caution in their easing cycles. Fiscal policy in advanced economies is expected to tighten in 2025, with developing economies implementing comparatively moderate adjustments.
In United States, growth is expected to be 1.5% in 2025, supported by consumer demand, rising incomes, productivity gains, and accommodative financial conditions. However, policies under the new U.S. administration—particularly on trade, taxation, immigration, and regulatory changes—may have diveRse implications on the economy.
In 2024, Europe (‘EU) registered a growth rate of 0.8% supported by monetary easing by European Central Bank. Economic activity in EU is projected to remain fiat in 2025, before showing modest recovery in 2026. As per IMF, recovery will be largely driven by improvement in domestic demand along with rising wages. The United Kingdom (‘UK) is expected to register a stable GDP growth of 1.0% in 2025, aided by gradual interest rate declines, steady real income growth, and improving consumer confidence. However, elevated geopolitical uncertainties and structural constraints, such as low productivity and an aging population, will continue to pose challenges for Europe and UK.
The Chinese economy continued to grow in 2024, witnessing a growth rate of 5%. Growth is projected to remain stable at 4.5% in 2025 and 2026, though overcapacity, sluggish domestic demand, and structural challenges in the property market remain as concerns. Outcome of governments stimulus on domestic consumption, US - China trade discussions, and export performance will impact the industrial output of China and would be the key watchpoints in 2025.
Fuel prices are expected to decline by 7.9% in 2025, driven by weak Chinese demand and strong non-OPEC+ oil supply, although gas prices may rise due to supply disruptions. Non-fuel commodity prices are expected to increase by 4.4% in 2025. Meanwhile, global trade volumes are projected to be slightly lower in 2025 and 2026, owing to heightened trade policy uncertainty.
2. Indian Economy
India is one of the fastest-growing major economy. It demonstrated a growth rate of 6.5% in FY2024-25. Despite global headwinds, Indias growth is expected to remain rangebound, 6% - 6.5%, in the next couple of years. The economy is expected to be driven by strong domestic consumption, government capital expenditure, and robust expansion in the services and manufacturing sectoRs.
Infiation is projected to moderate and be rangebound, 4.0–4.5% in the near term, supported by favourable food price trends. Core inflation across goods and services has remained stable, while fuel prices have declined. The moderation in inflation has enabled the Reserve Bank of India to adopt a more accommodative stance, with interest rate cuts anticipated to stimulate consumer spending and credit growth. Foreign Portfolio Investment volatility is expected to subside, while softening crude oil prices will likely support exchange rate stability.
On the sectoral front, the services sector has demonstrated resilience, with financial services, real estate, professional services, public administration, and defence driving growth. Exports in the services sector have also recorded strong performance. Construction activities and utility services have supported industrial growth, while high-value-added manufacturing exports—particularly in electronics, semiconductoRs, and pharmaceuticals—have shown robust momentum. Agricultural production has remained strong, underpinning rural consumption, and contributing to steady economic activity in rural markets.
The Government of India (‘GoI) remains focused on fiscal consolidation, employment generation, and boosting capital investment. The share of capital expenditure in central government spending has continued to rise, playing a critical role in industrial and infrastructure development. Increased capital outlays on infrastructure and asset creation are expected to generate growth multiplieRs. The PLI scheme has successfully attracted investments and stimulated production across various industries. The Government is exploring further sectoral expansion to enhance domestic manufacturing and develop labour-intensive industries.
Despite Indias strong economic momentum, certain downside risks peRsist. Towards the end of 2024, economic activity moderated due to weaker private and foreign investment flows, impacting industrial output. The rupees depreciation, coupled with uncertainties surrounding cross border conflicts, global trade policies and supply chain disruptions, could pose a few challenges.
Overall, Indias economic outlook remains strong, driven by robust domestic demand, policy support, and sectoral resilience. Improving trade relations with the developed economies will provide the requisite impetus to the economy. The India – UK trade agreement is a positive development in this direction. By leveraging its domestic strengths and implementing strategic reforms, India is well-positioned to navigate global challenges and maintain its trajectory as a leading global economic powerhouse.
3. Global Steel Industry
The steel sector has historically been a corneRstone of industrial progress, forming the foundation of economic development. However, the past year presented significant challenges for the industry, as global manufacturing activity remained subdued due to low household and business confidence, leading to cautious spending and investment. High input costs, geopolitical uncertainty, and tighter financing conditions have delayed capital investments. The lingering effects of inflation have further eroded purchasing power and consumer sentiment. Additionally, weak housing construction in major markets such as China, the United States, Europe, and Japan has adversely impacted steel demand. The automotive sector, a major consumer of steel, also experienced slowdown in 2024. However, investment in manufacturing facilities and public infrastructure provided some support to global steel demand. Sustained capital expenditure in these areas by major economies played a key role in offsetting weaker demand from traditional sectoRs.
While steel demand weakened in China and most developed economies, developing economies like India have demonstrated resilience. Steel demand in the developing world excluding China grew by around 3.5% in 2024, while the developed economies witnessed approximately 2% decline in steel demand in 2024. Exports from China to the rest of the World were at their highest level since 2016, at 111 MT as domestic demand for steel in China decreased significantly, whereas the decline in production was moderate. The high exports from China have resulted in protectionist measures by different countries. Imports into the EU increased from 25.6 MT in 2023 to 27.4 MT in 2024. In India, the imports from China stood at 2.83 million tonnes in FY2024-25, around 12% higher than the previous year.
Steel Demand Outlook
Global steel demand is projected to grow by 1.2% in 2025, reaching ~1,770 million tonnes. After three consecutive years of decline, steel demand is expected to recover globally (excluding China) in 2025. A stable global economic outlook, coupled with improving financing conditions and real income growth in major economies, is expected to support recovery in private consumption and investments before the tari_ impositions. Additionally, a significant recovery in residential construction is also anticipated from 2025 onward, supported by easing financing conditions. However, the tariffs imposed by US administration and reciprocal tariffs by countries has led to increased uncertainty in demand-supply balance and continues to be a major risk to the steel industry. At a regional level, the downturn in Chinas real estate sector is expected to peRsist, leading to a 3% decline in steel demand in 2024, followed by an additional 1% decline expected in 2025. However, government intervention and economic support measures could help stabilise demand. In Developing Economies (excluding China), steel demand grew by 3.5% in 2024 and is expected to further accelerate to 4.2% in 2025. Emerging economies in the MENA and ASEAN regions are expected to rebound after experiencing a significant slowdown in 2022 and 2023. In Developed Economies, steel demand declined by around 2% in 2024, with major steel-consuming nations—including the United States, Japan, South Korea, and Germany—experiencing contractions. However, demand is expected to recover by 1.9% in 2025, driven by improving economic conditions.
In Europe, apparent steel consumption experienced another drop of 2.3% in 2024. Output growth in the steel-using sectoRs is expected to remain low in 2025 due to continued low investments following from the high interest rates. In 2025, apparent steel consumption is projected to recover at a gradual pace of 2.2%, based on a positive industrial outlook and easing global tensions, though they are unpredictable now.
4. Indian Steel Industry
India remains the worlds second-largest steel producer and one of the strongest demand driveRs, with steel demand expected to grow by 8% in 2025. Demand is expected to reach 200-210 million tonnes by 2030, driven by strong expansion in steel-intensive sectoRs such as infrastructure, housing, transportation, power, and renewable energy.
Growth is further supported by rising demand for consumer durables and capital goods. Additionally, government initiatives, including Production-Linked Incentives (‘PLI) schemes and increased investments in infrastructure and manufacturing, have played a crucial role in boosting steel production and consumption. In the Union Budget for FY2025-26, the Government of India (‘GoI) has maintained capital expenditure (capex) as a share of GDP at the same level as 2024, reinforcing its commitment to industrial growth.
While steel demand remains robust in India, steel prices are expected to remain range bound, capped by the threat of Chinese imports. Policy support provided by the Government in the form of a safeguard duty of 12% on April 21, 2025 for 200 days has given a partial relief to the Indian steel industry.
Overall, while the global steel demand is poised for recovery in 2025, the industry remains exposed to geopolitical, economic, and financial risks. India, however, continues to stand out as a high-growth market, supported by strong domestic demand and investment. The long-term outlook for the Indian steel industry remains optimistic, with continued infrastructure development, industrial expansion, and supportive government policies driving its growth. Effective trade policies, price stabilisation measures, and sustained investment will be crucial to maintaining Indias competitive edge in the global steel market.
5. Global Raw Material Market
The steel raw materials market in FY2024-25 stayed volatile due to coking coal mine outages and speculation about Chinese governments stimulus announcements to fuel its slowing economy. However, both iron ore and coking coal markets declined due to weak steel markets globally, and continuing doubts that steel consumption could recover meaningfully in China while their economy focused on non-steel intensive sectoRs for growth.
Demand & Supply
Total global crude steel production for 2024 amounted to 1.84 billion tonnes (‘BT), decreasing by 0.9% year-on-year. Growth in India partly offset losses in other Asian countries, while European countries also saw production rebounding slightly.
Crude steel production in China, the worlds largest steel producing country, declined by 1.7% to 1.01 BT. India continued to see growth in steel production, albeit at a slower pace, with total crude steel production rising to 6.3% y-o-y to 149.6 MT; while the EU also saw growth of 2.6% to 129.5 MT.
As a sign of weakening domestic demand, Chinas finished steel exports hit a nine-year high of 111 MT in 2024 (up 22.7% year-on-year), leading to increasing anti-dumping investigations and tariffs from countries which faced oveRsupply pressures from imports.
Despite lower steel production in China, Chinese iron ore imports in 2024 hit a record for the second year in a row, rising 4.9% y-o-y to 1.14Bt, leading to a build-up of the material at the ports. Similarly, coking coal imports to China surged 19% to 122 MT, with imports from landlocked Mongolia at 56.8 MT and those from Russia at 30.5 MT, increasing by 5% and 14.5% respectively. Shipments of iron ore from Australia and Brazil were healthy, increasing by ~2.9% and ~1.4% y-o-y respectively in 2024; while Australias Department of Industry, Science and Resources projects expects metallurgical coal exports for their FY2024-25 and FY2025-26 to be 163 MT and 174 MT respectively, increasing from 151 MT in FY2023-24.
Prices
Seaborne Iron ore prices in 2024 were lower y-o-y (year-on-year basis), in line with steel prices globally. The 62% Fe CFR China index prices ranged between $89.35/dmt (dry metric tonnes) and $143.95/dmt in 2024, compared to $97.35/dmt and $141.45/dmt in 2023. Average iron ore prices stood at $109.44/dmt for the year, ~$10/dmt lower than $119.75/dmt for 2023.
The market started the year strongly above $140/dmt on the back of record iron ore imports into China in 2023, but quickly trended downwards due to negative mill margins and peRsistent weak downstream steel demand, especially from the construction sector. Consequently, major mineRs sold a higher proportion of low to medium-grade iron ore due to cost pressures faced by steel mills. The cyclone season in Western Australia was more severe than expected, but the price reaction was milder than prior years due to lower demand. Lower prices prompted buying activity, which led to China iron ore imports hitting a record high in 2024 for a second year, and port inventory closing the year at nearly 150 MT.
Seaborne Coking coal prices were on a downtrend in 2024 due to sluggish demand from both China and India, while Chinas domestic coking coal production and imports from Mongolia are strong. Prime Hard Coking Coal FOB Australia prices ranged between $180/t and $338.1/t in 2024, compared to $221.5/t and $390.0/t in 2023. Average coking coal prices stood at $240.37/t for the year, down from $296.27/t for 2023.
Due to weak fundamentals in China, Chinese CFR prices ended the year below Australian FOB + freight, eliminating most seaborne demand. In India, higher coking coal demand from the projected expansion of crude steel production and coke making capacity depends on the successful execution of projects. Uncertainty also remains regarding the extension of Indias quantitative restrictions on imported coke which may impact the flow of seaborne coking coal.
Strategic Initiatives in Raw Material Sourcing at Tata Steel
- New coal trials: Tata Steel has successfully conducted 7 new coal trials in FY2024-25. From the previous years trials, 6 coals were added into our portfolio, for more competitive and diveRsified sourcing. New domestic sources of high-grade thermal coal in the Direct Reduced Iron (DRI) have been included in the buying plan to reduce the overall cost in FY2024-25.
- Blend optimisation: Initiatives were undertaken for leaner blend through additives, weaker coals, Value-In-Use accretive coals for each basket.
- Price Prediction Models: As part of digital initiative, Tata Steel has developed in-house model to project coking coal index with 3 months forecasting period- generating data points enabling Tata Steel to anticipate market movement for better sourcing strategy.
- Supplier Engagement: Tata Steel continues to strengthen met coal supplier connect through organised meets in Australia and Canada, long-term contracts, supplier visits to our manufacturing sites etc.
- Domestic Sourcing: The volume under Long- term & spot contracts have been enhanced with Coal India Limited and its subsidiaries enabling us to marginally reduce dependence on imported material.
- Other improvement initiatives: Value creation through fixed price deals; engagement with Price Reporting Agencies to share feedback on supply/ demand situation, spot offeRs etc.
III. Strategy
Tata Steels vision is to be the global steel industry benchmark for Value Creation and Corporate Citizenship. In India the focus remains on driving growth and leadeRship in the marketplace, consolidating cost position, exploring adjacent businesses, while creating a positive and sustainable environmental impact. On the other hand, it is also focused on driving the transition towards low emission steel making in the UK and the Netherlands.
The following define the strategic objectives of the organisation:
Market LeadeRship
Steel industry in India is expected to demonstrate strong growth through this decade and will play a pivotal role in achieving Indias economic vision. The demand for steel in India is being driven by structural factors like growing infrastructure, rapid urbanisation, and expansion of manufacturing sector. Domestic availability of raw materials and competent cost-e_ective labour, have made India competitive, ranking as the second largest steel producer globally.
Tata Steel is on track to increase its production capacity in India. The organisation successfully commissioned Indias largest blast furnace at its Kalinganagar facility under TSK phase 2 capacity expansion that will take the total capacity of the site from 3 to 8 MTPA. The new blast furnace will significantly boost the plants overall production capabilities, allowing Tata Steel to meet the growing demands of various industries. The initiatives aimed to increase captive raw material mining are proceeding as per plan.
E_orts are being made in the areas of digital adoption, innovation and creating a culture of organisation-wide customer obsession. The Company is on the path to develop an enriched portfolio of high-end products and solutions.
Consolidate position as global cost leader
Raw materials security has always been critical for industries like steel owning to the significant share of raw material cost in the overall steel manufacturing cost. In India, Tata Steel remains focused on securing low-cost captive raw material to maintain supply security while optimising production costs. Overall optimisation of value chain including procurement, supply chains and energy efficiency is crucial for the organisation.
Process improvements and savings through initiatives like Shikhar25 have resulted in key performance indicatoRs in India to be at global benchmark levels. The organisation is working parallelly on execution of structural cost reduction initiatives- expanding raw material portfolio, strengthening logistics network, and reduction of fixed costs, among Others. The Company is also working on cost reduction initiatives in the UK and the Netherlands to ensure that the performance is at benchmark levels in the geographies that they operate. Other measures being carried out to improve operational efficiencies include leveraging technology and digital solutions to attain benchmark cost performance.
Attain leadeRship position in adjacent businesses
Tata Steel continues to explore and grow in adjacent businesses that leverage our capability and capitalises on market opportunity. The approach is to differentiate through deep understanding of customer needs, technology and knowledge. In the Services & Solutions business, the Company is leveraging its deep knowledge and expertise in steel applications to create solutions for construction and household applications such as dooRs, windows, and housing solutions. Taking advantage of growth in non-steel materials driven by megatrends (such as light-weighting), the New Material Business is focused on creating technology-driven businesses in composites, graphene, and advanced ceramics.
LeadeRship in sustainability
As one of the leading steel produceRs in the world, the Company aspires to be a leader in sustainable business practices in the industry. With a Net Zero target by 2045, Tata Steel is leveraging innovation in business model and technology to drive sustainability. In India, the Company is investing in a 0.75 MTPA scrap-based Electric Arc Furnace in Ludhiana. The Company has also partnered with SMS group to build a demonstration plant for EASyMelt (Electrically Assisted Syngas Melter) which has the potential to significantly reduce carbon emission at the iron making stage. The Company is also working on low Technology Readiness Level projects in the areas of Carbon Capture and Sequestration, use of Hydrogen in the steel making process and coal gasi_cation which have the potential to significantly improve our carbon footprint. Tata Steel is the fiRst Indian steel company to use biofuel for shipment. It is also working on increasing the share of renewable energy in its power mix. Furthermore, Tata Steel has launched Indias fiRst Carbon Bank, aimed at converting CO_ into value-generating assets for customers.
In the UK, the Company is transforming the heavy end asset in Port Talbot from the traditional blast furnace- basic oxygen furnace route of steelmaking to a scrap based electric arc furnace route which loweRs the carbon emission significantly. The Company has received support from the UK government for this transition. In the year under review, Tata Steel UK (TSUK) successfully shut down its heavy-end operations, following global best practices for decommissioning. Additionally, TSUK has partnered with M/s Tenova for the supply of advanced EAF and related steel-making equipment. Tata Steel is committed to reducing carbon emissions in the Netherlands by 35%-40% and has commenced discussions with the Dutch government to advance this initiative. In Netherlands, the Company has launched Zeremis? Delivered, which enables the customers to receive their steel orders through lower-emission transportation methods.
Strategic enableRs
To achieve its strategic objectives, Tata Steel has identified the following strategic enableRs: Best places to work for in Manufacturing in India – In an evolving work paradigm, it is important for Tata Steel to stay competitive by being an employer of choice. The organisation is utilising process intervention and technology for developing best-in-class infrastructure, future ready policies, and ensuring a safe and healthy work environment for its employees. Several measures including creating a culture of collaboration, diveRsity & inclusiveness, capability development & engagement of employees lies at the forefront of the organisational goals. In the year under discussion, Tata Steel embarked upon the One Tata Steel transformation journey focussed on building a cohesive, integrated global organisation. Becoming the digital leader in steel industry globally
– With the industry becoming smarter and agile, digital has a significant potential of unlocking value in existing processes. The organisation aims to build digital mindset and capabilities to develop remote and intelligent operations in various areas across its value chain. Tata Steel has adopted a 7-layer technology architecture which has helped the Company make significant progress on its digital and analytics journey. The Company has built over 550+ AI and advanced analytics model which are driving excellence in manufacturing sector, functional excellence and customer experience.
Be among top technology driven steelmaking companies globally - Technology led differentiation has been one of the corneRstones for Tata Steel in bringing value to the customers. Being a pioneer in the steel industry, the organisation is dedicated to leveraging technology to grow and overcome business challenges. While technology will play a pivotal role in its sustainability journey, it will also enable Tata Steel to become future ready for evolving customer needs. The Company through its ecosystem of R&D and technology partneRs are working on several low technology readiness level programmes in the area of utilisation of low-quality raw materials, sustainable generation and usage of Hydrogen, Carbon Capture and Utilisation, among Others.
Fostering a culture which make Tata Steel future ready The organisation has fostered a culture of continuous improvement, community welfare, ethics, safety, and environmental consciousness. It also strives to create new facets of culture like agility, innovation, and strategic orientation across the organisation. Tata Steels launch of Indias fiRst all-women mining shift at its Noamundi iron mine demonstrates its commitment to embedding a culture focused on DiveRsity, Equity and Inclusiveness across the value chain.
Tata Steels overall long-term strategy is crafted by integrating its vision, mission and values with the evolving external and internal context and we are on the path to becoming Structurally, Financially and Culturally future ready.
IV. Human Resource Management and Industrial Relations
The human side of steel is a quality the Company has inherited from its legendary founding fatheRs. This has inspired the Company to imbibe care for employees as one of the core business processes and many pioneering initiatives makes Tata Steel Best Place to Work. We are a strong team of ~80,000 employees (on rolls) which represent diveRse group of people representing varied demographics across geographies. We continuously strive to foster an inclusive work culture.
Our vision is to become the ‘most respected and valuable steel company globally by 2030. To achieve this, we must be future-ready structurally, culturally, and financially. We rely on numerous and evolving initiatives to implement this objective and invent mechanisms for talent development, including competitive pay and benefits, flexible work arrangements and productivity improvement measures. We have deployed numerous programmes including mentoRship that advance careeRs, employee engagement in remote locations, open communication, and feedback. We also continue to review and refine the mechanisms we use to hire, develop, evaluate, and retain our employees. Safety is integral to everything we do and we continue to invest in improving process and behavioural safety in all segments of workforce.
Keeping employee well-being foremost, we have embraced a comprehensive approach that nurtures emotional, physical, and social wellness. Future ready trails of agility, digital mindset, execution excellence and customer centricity are being consciously imbibed, both in thought and action, at every level across the organisation. In addition to safety and ethics, the sustainability culture is becoming our core.
Tata Steel as a company has grown from strength to strength for more than a century due to the support of enlightened leadeRship of workeRs union(s). The Management and the Union have built a culture of working together with mutual respect and trust which has resulted in industrial harmony which is a benchmark for many industries in India. In Europe, we work together with the multi union and Central Works Council (‘CWC) in a collaborative manner.
Additionally, we recognise the need to enhance our synergy by leveraging each others strengths. This requires a cultural shift towards new ways of collaboration and utilising capabilities across Tata Steel. In June 2024, we initiated the One Tata Steel journey to drive global synergy, integration, and accountability. The journey of decarbonisation in the UK and the Netherlands is supported and consulted with the Union.
To foster a performance-driven culture, feedback conveRsation is crucial and accordingly we have revamped our Performance Management System (‘PMS). Furthermore, we have introduced quarterly town halls with CEO & MD to engage with employees, addressing management expectations and challenges faced by the workforce. The Young Magnet program and Talent Board initiative helps in identifying young talent.
Efficiencies for Higher Productivity with Care
Tata Steel has implemented humane voluntary separation schemes for both blue-collar and white-collar employees, known as Sunhere Bhavishya Ki Yojana (‘SBKY ) and Second Innings, respectively. In FY2024-25, Tata Steel recognised the need to enhance productivity to align with global benchmarks.
Approximately 1,400 employees voluntarily separated from the Company through these schemes in FY2024-25. This initiative has increased overall productivity from 900 to 925 tonnes of crude steel per employee per year. As a responsible employer, Tata Steel provided a comprehensive separation package, including severance pay in the form of monthly pensions, medical facilities, and other applicable benefits, in addition to standard retirement benefits.
Redundancy Management at UK
UK Business along with UK Steel Committee, consulted and agreed upon a generous Voluntary Retirement package to support its redundant workforce. The support package put forward includes a redundancy payment based on the length of an employees service, with minimum assured amount for eligible full-time employees, while proportional payments are applicable for part-time employees. This helped in closure of 2 Blast Furnaces and voluntary retirement of 1,800+ people. Tata Steel will also offer a retention ex-gratia payment of Rs5,000 for potentially affected employees, dependent upon maintaining an indicative attendance level of at least 96% during their last four months of employment. For any employee in Port Talbot selected as being at-risk of compulsory redundancy, the Company will provide the option for them to participate in a paid re-training scheme for a defined period to help them secure alternative future employment.
During 2025, TSUKs employees will reduce to less than 6,000 compared to over 8,000 before the restructuring.
Redundancy Management at the Netherlands
Tata Steel Netherlands (‘TSN) management has embarked on a major transformational program to significantly improve its operational and financial performance over the coming years. As part of the transformation improvement program to enhance employee productivity, TSN has envisaged and proposed reduction of ~1,600 of its Full time employees (‘FTE) through implementation of a new Target Operating Model across all its areas of its business and functions. To initiate the process, TSN management on April 9, 2025 has submitted its overall plan on the organisational changes and reduction in number of FTEs to the Central Works Council. The detailing of the redundancy plan will be worked out with CWC and the Trade Unions over the coming months.
Capability Development
In an era of rapid transformation, continuous learning remains at the heart of Tata Steels workforce strategy. All three geographies have steel academies. This year, we significantly expanded our upskilling initiatives training 3,500+ employees, ensuring our people stay ahead in critical areas such as Gen AI, Hydrogen Safety, and Carbon Capture. The launch of DIVYAshala, an immeRsive learning platform integrating virtual reality, gami_cation, and simulator-based training, has redefined experiential learning. Strengthening our commitment to deep technical expertise, the Schools of Excellence (SoE) framework has now evolved into an extensive network of specialised training hubs.
Recognising the indispensable role of our contract workforce, we introduced a digital skilling platform, empowering thousands with industry-relevant capabilities. Our structured approach to workforce development has earned national accolades, reafirming Tata Steels leadeRship in learning and capability building. TSMC addressed regional talent development by launching the Haul Truck Trainee Program, a flagship initiative aimed at training the Indigenous workforce for employment at its mine sites.
At Tata Steel, learning is more than a process—it is a culture. By continuously investing in people, we are not just enhancing skills; we are shaping the future of the steel industry. TSUK offeRs 4 years unique training to Apprentices. TSN has a unique practice for involving community children to study science and manufacturing.
LeadeRship Development
At senior leadeRship levels, officeRs are sent for marquee programmes that have been curated in partneRship with various globally renowned institutions such as INSEADs and CEDEP. Strategic projects, task forces, and senior leadeRship roles provide job enrichment opportunities to officeRs at senior leadeRship to take on new challenges and enhance decision-making capabilities. Participation in boards, councils, and group-level platforms also supports leadeRship growth and succession readiness.
Talent Management
Our Performance Development System emphasises continuous growth, integrating goal setting, structured feedback, and regular check-ins to foster a culture of self-improvement.
Our enhanced UpNext Performance Management System supports a high-performance culture with updated assessment frameworks and targeted development through Performance Improvement Plans (PIPs). Additionally, our Talent Review process focuses on career growth, role rotations, and identifying training needs.
The TalentPro digital platform streamlines performance management and ongoing feedback, while initiatives like MentorBlitz and Lunch & Learn promote knowledge sharing and professional development, reinforcing our commitment to employee advancement.
In TSUK Talent Boards were introduced in 2024 and continue to evolve as on output and input to the Performance Management Process. The Talent Boards identify key talent of either high potential or growth and are discussed in Talent Board review meetings with the purpose of identify opportunities to support in-role interventions, development opportunities and career progression.
TSUK have developed the Management and LeadeRship Development called ‘The Spine Programme. The Spine Programme offeRs a series of development and training initiatives from Graduate level to Senior LeadeRs and Directors to support career progression throughout the organisation.
In TSN, to support transition to low emission steel production increasing focus is given to training courses in the field of sustainability and to preparing students steel production using hydrogen. Vocational training courses in electrical, mechanical, and process engineering include a ‘hydrogen learning module. The Tata Steel Academy also offeRs training opportunities for existing employees from a non-technical background for new positions in our production units. Existing employees can also participate in technical vocational level and bachelor level studies via the Academy.
HR Processes and Policy Enhancements
Enhancing Employee Engagement through Digital Transformation:
At Tata Steel, our unwavering commitment to our people is at the heart of our success. This year, we advanced our digital transformation to enhance employee experience and operational efficiency. Our centralised onboarding system ensures seamless integration for new hires, while digital exits facilitate dignified transitions.
Recognising the importance of meaningful connections, we introduced transparent leadeRship town halls and structured feedback channels. Digital interventions, including the Employee Policy Portal and PeopleCare 2.0, offer proactive, solution driven support and promote awareness and engagement.
Our strategic, data-driven approach leverages predictive analytics and AI-powered recruitment, streamlining hiring processes and improving candidate experiences. By embracing Generative AI in recruitment and policy management, we are enhancing the overall employee experience, ensuring that Tata Steel remains a pioneer in human capital practices, aligned with our values of pioneering and excellence.
Workforce Well-being:
At Tata Steel, employee well-being and engagement are at the core of our people philosophy. We believe that a healthy, motivated, and inclusive workforce is the key to long-term business success, and we are committed to creating an environment where every individual feels valued, supported, and empowered to reach their full potential.
Fostering Social Equity & Integration:
Recognising that a sense of belonging fuels productivity and collaboration, we have taken bold steps to integrate employees and contract workeRs into a shared ecosystem. A testament to this commitment is the introduction of 43 inclusive canteens, creating spaces where diveRse workforce groups can come together, fostering a culture of camaraderie and mutual respect. We deploy diveRse workforce including women and transgendeRs in mines and manufacturing through dedicated initiatives like
‘Women@Mines and ‘Queerious.
Holistic Wellness for a Healthier Workforce:
Well-being at Tata Steel transcends physical health, embracing a comprehensive approach that nurtures emotional, mental, and social wellness. Initiatives like Engineered for Wellness and Wellness Week have expanded access to resources that foster physical vitality and emotional resilience. Prioritising preventive healthcare, we have significantly enhanced Executive Health Check-up participation, while smart healthcare solutions now ensure seamless medical coverage for employees in remote locations—reinforcing our commitment to equitable healthcare access.
With digital wellness at the forefront, The Wellness Corner App has rapidly gained traction, supporting thousands of employees on their journey towards better health. The Lifestyle Transformation Program has further empowered employees to adopt healthier lifestyles, reducing reliance on medication and promoting long-term well-being. Institutionalising these efforts, we introduced a Recognition Policy for Wellness, embedding well-being into Tata Steels governance framework through dedicated Wellness Committees within the 3-tier Joint Consultation System.
In TSUK, we have mental fiRst aideRs who promote and support employees in improving mental health.
Industrial Relations and Workforce Management
Ensuring industrial harmony remains central to our people strategy. A revised Joint Consultation structure was implemented across all entities, fostering a transparent and collaborative work environment. Programmes such as Aagman for union representatives and Navchetna for workforce engagement strengthened industrial relations.
A seamless demobilisation process for around 20,000 contract workeRs post-project completion ensured dispute-free transitions. Additionally, structured wage agreements and payroll system integration across merged entities reinforced workforce stability and operational efficiency.
DiveRsity, Equity, and Inclusion Breaking BarrieRs in Gender DiveRsity:
As a pioneer in gender inclusion, Tata Steel continues to push boundaries in industries traditionally dominated by men. In a historic move, we launched Indias fiRst all-women mining shift at Noamundi Iron Mine, Jharkhand, marking a significant milestone in our journey towards gender diveRsity in core operations. Furthering this momentum, our ‘Women@Mines initiative has created groundbreaking opportunities for women in mining, offering them specialised training and career pathways. Through Tejaswini, local women have been trained to operate heavy machinery, undeRscoring our commitment to skill development, workforce inclusion, and workplace transformation.
Recognising the need for structured mentoRship and career growth for women professionals, one of our group companies, TM International Logistics Limited launched ‘SheRo, a dedicated platform fostering collaboration, career development, and leadeRship growth for women employees.
Tata Steel Business Delivery Centre Limited, Tata Steel Downstream Products Limited and Jamshedpur Continuous Annealing and Processing Company Private Limited have advanced gender inclusion by strengthening female representation, enabling career mobility for women and initiating infrastructure and sensitisation efforts to engage transgendeRs and differently abled, reflecting a group-wide push to break traditional workforce barrieRs.
Tata Steel UK aims to progress to have a more diveRse workforce in its widest sense and is taking concerted efforts to improve diveRsity, from its Women in Steel network.
Tata Steel IJmuiden runs a program to encourage and promote diveRsity and inclusion. The aim is to make all employees feel equally important and valuable regardless of their cultural background, age, religion, gender (identity), disability, sexual orientation or any other difference. The annual ‘Being YouRself Works survey was conducted in February 2025 to assess perceptions of inclusion and cultural diveRsity in the workplace which revealed that 97.4% of employees feel they can be themselves at work. To increase the number of females in leadeRship positions, TSN has created the Future Female LeadeRship, a program by nomination, for women with ambition and potential for a leadeRship position at Tata Steel. The [Fe]Male Network aims to promote equality and inclusion by increasing the visibility and involvement of women in the organisation, while also providing a platform for networking and exchanging experiences.
Driving Inclusive Hiring & Workplace DiveRsity:
At Tata Steel, we believe that a truly diveRse workplace is one that welcomes individuals from all walks of life. In a pioneering move, we onboarded the second batch of transgender HEMM operatoRs at our West Bokaro Division, solidifying our commitment to creating an inclusive mining workforce. To further promote our vision of inclusion, we have proactively recruited persons with disabilities (PwDs) as Security Control Room OperatoRs, ensuring that representation is reflected at every level.
Introducing a Comprehensive Parental Benefit Policy:
Work-life balance and gender equality in caregiving responsibilities remain at the heart of our evolving people policies. To create a more equitable and supportive workplace, Tata Steel upgraded its Maternity Benefit Policy into a comprehensive Parental Benefit Policy, ensuring holistic coverage for all employees, including those on Fixed Term Contracts. The revised policy goes beyond traditional maternity benefits, incorporating leave entitlements for critical situations (such as stillbirth, child loss during maternity leave, adoption leave etc.) Recognising the importance of shared caregiving, we introduced Child Care Leave, enabling both parents employed at Tata Steel to actively participate in their childs early years.
Recognitions & Awards: A Testament to Excellence in People Practices
Tata Steels legacy of excellence is built on a foundation of inclusion, innovation, and unwavering commitment to our people. This year, that legacy was recognised and celebrated, a story told through a series of prestigious awards. We were awarded Gold Employer by the India Workplace Equality Index (IWEI) 2024 for the fourth consecutive year, recognising our steadfast commitment to LGBTQIA+ inclusion and equity. Our leadeRship in gender diveRsity was honoured with the ‘Gender DiveRsity Icon and ‘Wings of Steel awards by the Indian Steel Association, celebrating our transformative efforts in building a gender-inclusive workforce. Our excellence in talent acquisition and workforce development was acknowledged with the Brandon Hall Groups Gold Award, recognising our best-in-class hiring strategies and talent management initiatives. Additionally, our innovative ‘Queerious campus challenge, aimed at empowering LGBTQIA+ students, was celebrated at Tata Innovista under the Sustainability Innovation category, reinforcing our commitment to inclusive hiring and leadeRship development.
Beyond diveRsity and talent excellence, Tata Steel has also been recognised for its exceptional employee experience. Securing the coveted ABECA 2024 - AmbitionBox Employee Choice Award, we ranked among the top 20 mega companies, a testament to our strong workplace culture, employee engagement, and progressive HR practices.
Our global footprint in labour welfare and industrial relations was further cemented as Siam Industrial Wire received the Certified Thai Labour Standard Award and the 2024 Excellent Practices in Labour Relations and Welfare Award. This recognition, earned for an impressive 16 consecutive years, highlights our commitment to best-in-class labour practices, ethical employment standards, and employee well-being on a global scale. These awards are not just symbols of achievement; they are a reflection of our enduring spirit, our commitment to creating a workplace where everyone feels valued, respected, and empowered to make a difference.
Tata Steel received a prestigious gold standard in recognition of its pioneering mental health fiRst aid programme for well-being from Mental Health FiRst Aid Wales.
V. Tata Steel Group Operations
1. Major Highlights
During the year under review, the consolidated crude steel production for Tata Steel Group (‘TSG) was 30.92 MT which was higher by 3% (FY2023-24: 29.94 MT), primarily on account of commissioning of BF#2 at Tata Steel Kalinganagar and ramp-up of production at NINL during the year. Production at European operations was at par as FY2023-24 was impacted by reline of Blast Furnace 6 in the Netherlands and current year was impacted by lower production at Tata Steel UK post shut down of Blast Furnaces during the year.
The production increased at Tata Steel Standalone to 20.72 MT which was higher by 3% (FY2023-24: 20.12 MT) attributable to commissioning of BF#2 at Tata Steel Kalinganagar during the year. NINL produced 0.95 MT, higher by 44% over previous year (FY 2023-24: 0.66 MT), due to debottlenecking and ramp up of production. Tata Steels European operations maintained production level of 7.82 MT which was at par with previous year (FY2023-24: 7.80 MT). This was attributed to the reline of Blast Furnace 6 in the Tata Steel Netherlands in the previous year resulting in lower production. Production during the current year was impacted by lower production at Tata Steel UK post shut down of Blast Furnaces. Production at South-East Asia (‘SEA) at 1.43 MT (FY2023-24: 1.36 MT) was higher by 5% due to higher exports sales.
The consolidated steel deliveries of TSG at 30.96 MT in FY2024-25 which was an increase of 5% (FY2023-24: 29.39 MT), primarily at Tata Steel Standalone (1.03 MT) mainly on account of commissioning of BF#2 at Tata Steel Kalinganagar. Deliveries increased at European Operations by 0.29 MT as previous year was impacted due to the reline of Blast Furnace 6 in the Netherlands. The turnover of TSG in FY2024-25 was lower over FY2023-24 by Rs.10,628 crore (5%) on account of decline in steel realisations across geographies, partly offset by increase in deliveries at the Indian operations and the European operations attributable to increase in production.
The EBITDA in FY2024-25 was higher over FY2023-24 by Rs.2,400 crore (10%), primarily due to significant reduction in EBITDA loss at the Netherlands operations which was adversely impacted in the previous year due to reline of Blast Furnace 6 along with better operational performance at NINL due to significant reduction in costs owing to ramp up of production. Operating profit in the Indian operations decreased due to decline in steel prices, partly offset by higher sales volume (1.03 MT) and lower raw material costs due to decrease in prices mainly of coking coal along with improvement initiatives.
Tata Steel Group on a consolidated basis reported a profit after tax of Rs.3,174 crore as compared to loss after tax of Rs.4,910 crore in FY2023-24 primarily on account of exceptional charge of Rs.7,814 crore majorly for onetime non-cash impairment and restructuring provision recognised in respect of business restructuring at TSUK in FY2023-24. The increase in profit was also due to improvement in EBITDA mainly due to lower EBITDA loss at the Netherlands Operations and at NINL post production ramp up.
2. Tata Steel Limited (Standalone) a) Operational Review
| FY 25 | FY 24 | Change (%) | |
| Hot Metal | 20.89 | 19.94 | 5 |
| Crude Steel | 20.72 | 20.12 | 3 |
| Saleable Steel | 20.34 | 19.77 | 3 |
| Sales | 20.94 | 19.91 | 5 |
The saleable steel production and sales trend over the years is as follows:
Production and Sales of Steel Division
The combined saleable steel production of FY 2024-25 stood at 20.34 MT which was higher than that of FY 2023-24 (19.77 MT) by 3% attributable to higher production post commissioning of BF#2 at Tata Steel Kalinganagar. The combined steel sales of FY 2024-25 stood at 20.94 MT, higher by 5% over FY 2023-24 (19.91 MT), primarily on account of higher production and higher traded volumes.
Plant wise review
i) Tata Steel Jamshedpur (‘TSJ)
Tata Steel Jamshedpur Works is Tata Steels flagship plant and is among the fiRst steel plants in Asia and the only site in India to produce steel at the same site continuously for over 100 years. It has a capacity of 11MTPA.
Year under review
- Achieved the milestone of 50 million tonnes of Hot Metal production in a single campaign by H Blast Furnace, and G Blast Furnace concluded its second campaign of 20 years with 40.8 million tonnes.
- Set a global benchmark with E Blast Furnace achieving an annual fuel rate of 485 kg per ton of hot metal.
- The LD1 unit recorded its highest-ever annual crude steel production of 3.44 million tonnes, slightly surpassing its previous best in FY2022-23.
- Utilised 637 KT of scrap in Steel Melting Shops, contributing to a reduced carbon footprint.
- Recorded the best-ever Automotive Grade Steel production, enhancing supply for automotive applications.
- Introduced cold extruded briquettes from in-plant solid wastes as a low-cost alternative to iron ore for blast furnaces.
- Implemented biofuel as an alternative to fossil fuel in emissions.
- Achieved cost savings of ~Rs.770 crore through Shikhar initiatives in FY2024-25.
- Enhanced hot metal production by using PET Coke with low ash content and incorporating biochar as a partial fossil fuel replacement.
- Stabilised DRI usage in blast furnaces to improve emissions.
Strategic Initiatives
- The Merchant Mill became the fiRst in Tata Steel to use oxygen enrichment technology in its billet reheating furnace. This new process is expected to reduce fuel use by more than 25% and boost production speed by 10%.
- The Wire Rod Mill commissioned the worlds longest Stelmor Conveyor system along with advanced coil handling equipment. This upgrade helped the mill increase the supply of Grade-3 modified wire rods, a premium product used in high-strength applications.
Awards and Recognitions
Zero - Parts Per Million (PPM) Award from a major auto manufacturer for Zero Defect Delivery.
ii) Tata Steel Kalinganagar (‘TSK)
Tata Steels Kalinganagar plant is one of the worlds most advanced factories, recognised by the World Economic Forum as a ‘manufacturing lighthouse. Commissioned in 2016, Kalinganagar plant attained production levels at its rated capacity of 3 MTPA (Phase I) in less than two years. The plant is dedicated to manufacture Flat Product steel. FY2024-25 has been a pivotal year for TSK, marked by the commissioning of new facilities, production ramp-up, and improvements in operational KPIs. Almost all operating units have achieved their highest-ever annual production.
Year under review
- Achieved record production volumes: Sinter Plant - 4.66 MT (FY2023-24: 4.35 MT), Pellet Plant - 4.63 MT (FY2023-24: 2.59 MT), Blast Furnace - 4.82 MT of Hot Metal (FY2023-24: 3.67 MT), Steel Melting Shop - 4.39 MT of Crude Steel (FY2023-24: 3.47 MT), and Hot Strip Mill - 4.09 MT of Hot-Rolled Coils (FY2023-24: 3.70 MT).
- Approximately 392 KT of slabs have been exported to TSUK and other countries.
- Key milestones in Phase II expansion: Commissioning of Blast Furnace #2 (BF#2) in September 2024, the ramp-up of BF#2 to an estimated capacity of 1.43 MTPA in FY2024-25, commissioning of the 3rd furnace at HSM in December 2024, the charging of CP#2 in January 2025, and the rollout of the fiRst CRCA coil in December 2024.
- The Cold Rolling Mill (CRM) is set to produce high-strength cold-rolled products for the automotive sector, with Continuous Galvanising Line (CGL) commissioning anticipated in FY2025-26.
- Continued focus on developing innovative products, including X65H grade for hydrogen transport pipelines and CP780 grade for control arm of passenger car application. Various shipbuilding grades conforming to American Bureau of shipping (ABS) standards and tailored products for cryogenic gas cylinder application were developed.
- A diveRse product mix catered to multiple sectoRs, with special emphasis on automotive, oil and gas (API grades), and structural applications.
Strategic Initiatives
- The Phase-II coveRs various grades of hot-rolled products of different thicknesses. The finished product of Advanced High Strength Steels (‘AHSS) of wider dimension with higher tensile strength from the facility addresses to a great extent the future requirements of auto manufactureRs for lightweight higher strength steels while offering much better fuel efficiency. The plants world-class technology, strategic location, and access to key markets are its unique propositions.
- The plant design has been done with an emphasis on recycling waste. To reduce dependence on fossil fuels, waste gas from the coke oven and blast furnace is used to fuel the power plants. Slag from the blast furnace is supplied as raw material to cement manufacturing units in the nearby areas.
- As a Zero Liquid Discharge plant, the wastewater is processed in an efiuent treatment plant and recycled for use in the plant.
- Digital transformation continues to play a crucial role, focusing on automation and video analytics to enhance safety and operational efficiency.
iii) Tata Steel Meramandali (‘TSM)
Tata Steels Meramandali plant is one of Indias largest Flat Product steel manufacturing unit, equipped with steel making and finishing facilities. During FY2024-25, TSM achieved its highest ever crude steel production of 5.20 MT (previous best in FY2023-24: 5.16 MT) and highest ever saleable steel production of 5.51 MT (previous best FY2023-24: 4.84 MT).
Year under review
- Raw Material Security:
100% iron ore requirements met through captive mines, ensuring stable supply and cost control.
- Best ever production in FY2024-25:
a) Hot Metal Production:
Hot metal achieved its highest ever production of ~4.7 MT, reflecting its efficient operations and optimised utilisation of resources.
b) Downstream Steel Production:
Downstream operations showed continuous improvement in production on YoY basis and achieved the highest ever production of ~1.8 MT (i.e. 13% increase over previous year).
- Coke Plant Efficiency:
Captive coal consumption reached a record high, reflecting a shift in sourcing strategy and improvements in coke quality. Further, commissioning of Coke Dry Quenching unit (CDQ-1) at Coke Plant-1 resulted in lower fuel consumption in blast furnaces.
- Reduced Flux Consumption:
Steel Melting Shop (‘SMS) witnessed lowest ever _ux consumption in FY 2024-25 and improvement in lime quality reflecting improved process control and efficiency.
- Power Plant Optimisation:
Increased consumption of Char and Electrostatic Precipitator (‘ESP) dust at the power plant, has resulted in blend optimisation and reduced thermal coal consumption.
- DRI Plant Fuel Mix:
Domestic coal continued to contribute 10% to the total coal mix of DRI plants, reflecting commitment to domestic sourcing. Achieved lowest ever DRI Fuel rate.
- New Product Development innovatively developed STK 500 and STK 540 grade steel for the Mumbai-Ahmedabad Bullet Trains electrical mast poles and successfully completed New Product Development of API X65H, a hydrogen-compliant steel suitable for 100% gaseous hydrogen applications at 100 bar pressure, positioning itself as the fiRst integrated facility for hydrogen applications in India.
Green Initiatives & Sustainability
- Open-access solar power (15 MW) at Khopoli undeRscored the commitment to sustainable practices.
- Launched 20 electric buses as a demonstration of the Companys commitment to sustainable and eco-friendly transportation for its employees. This transition is projected to reduce carbon emissions annually, aligning with Tata Steels goal of Net Zero emissions by 2045.
- Developed a 25-acre biodiveRsity park, a remarkable transformation of a former ash mound near the plant. iv) Tata Steel Gamharia
Tata Steel Gamharia (‘TS Gamharia) plant located near Jamshedpur, which is equipped with steel making and finishing facilities dedicated to Long Product Steel of Special Bar Quality. The unit is having a crude steel production capacity of 1 MTPA and finished steel capacity of 0.8 MTPA.
TS Gamharia became a part of Tata Steel post-merger of erstwhile Tata Steel Long Products Ltd into the Company.
Year under review
- The Pellet Plant reached its rated capacity production of 1.2 MTPA for the fiRst time (19% y-o-y increase, 1 MTPA in FY2023-24).
- Sponge Iron Unit at Gamharia achieved the best-ever production of 0.521 MTPA (3% y-o-y increase) and best-ever specific coal consumption (2% y-o-y reduction).
- A 10% increase in char usage (from 20% in FY2023-24 to 30% in FY2024-25) was accomplished through the commissioning of the char plant, resulting in reduced emissions.
- Product range enhancement at the Bar Mill was achieved through the successful trial of 41 mm and 75 mm diameter sections.
- A successful trial of carbon black was conducted as a lower-cost, more environmentally favourable alternative to PCI in blast furnace injection.
- A successful trial of Ferro Shot at TS Gamharia EAF#3 resulted in the production of ~10 KT steel with a 100% solid charge (DRI + Ferro Shot + Scrap) for the fiRst time.
- Approval and supply of 11 mm and 15 mm Grade 3 material opened a new market segment of bearing steel for Tier-1 Auto OEMs.
- A super clean steel chemistry trial was conducted in grade 55SiCr63, 12 mm spring steel as part of an indigenisation initiative.
- A Power Purchase Agreement was successfully executed with Jharkhand Bijli Vitran Nigam Limited in December 2024. This collaboration will help reduce electricity bills by approximately ~C4 crore per month.
Recognitions:
- TS Gamharia received the ‘TPM Excellence Award 2024 conducted by the JIPM (Japan Institute of Plant Maintenance).
- TS Gamharia was recognised as the State Champion Energy Conservation Award 2024 in the Manufacturing Category by Confederation of Indian Industry (CII) East Region.
- TS Gamharia received the SHE Excellence Award 2023-24 in the Large-Scale Manufacturing category by CII Eastern Region.
- Sponge Iron (Joda Division) won the prestigious 15th India CSR Award from India CSR Network at the CSR LeadeRship Summit 2025.
Profit Centres review
a) Tubes Division
Tata Steels Tubes Strategic Business Unit holds a leading position in Indias tubes and pipes manufacturing sector. With a substantial installed capacity of approximately 1.65 million tonnes per annum (‘MTPA), the division operates four manufacturing facilities strategically located in Jamshedpur, Khopoli, Sahibabad, and Hosur. This is further augmented by a network of Tube Manufacturing PartneRs (‘TMPs) across eastern and northern India, extending its reach and production capabilities.
The business is organised into four broad offerings: Structural Tubes (Tata Structura), Conveyance Tubes (Tata Pipes), Precision Tubes (for boiler, automotive, and general engineering applications), and American Petroleum Institute (‘API) pipes for the oil and gas sector. Furthermore, the Tubes division has expanded into the services and solutions segment with offering of Tata Ezyfit (Door & Window Frames), High Aspect ratio Tubes & the newly launched 50 NB hand railing sections.
Note: Tubes division represents Jamshedpur tubes division and Tube manufacturing partneRs. From FY2023 onwards, it represents Jamshedpur, Khopoli, Sahibabad and Hosur along with Tube manufacturing partneRs.
Year under review
- Tubes Division has achieved a significant milestone for the fiRst time ever by surpassing 1 MT in production and sales during FY2024-25. Best-ever production of 1,019 KTPA and sales of 1,011 KTPA in FY2024-25, which is a growth of ~4% in production and ~3% in sales respectively w.r.t FY2023-24.
- Despite a challenging year the profitability targets for the year were also achieved through operational excellence.
- Tube Division has experienced remarkable growth in the Electric Vehicle segment, achieving an impressive 24% year-over-year increase. This success is attributed to the acquisition of new customers and the introduction of innovative tube sizes, with prominent two-wheeler and four-wheeler customers. Looking ahead, we are focused on our growth strategy including the development and commercialisation of high-strength tubes through a collaboration with the newly commissioned Continuous Annealing Line at Tata Steel Kalinganagar to ensure a steady supply of CQ590 tubes, reinforcing our commitment to meeting the evolving needs of the market.
- The automotive segment witnessed a shift in customer requirement from the customary ERW tubes into high strength low weight tubes in line with Bharat Stage IV and Corporate Average Fuel Economy (‘CAF?) norms.
- The launch of Ezyfit door frames, high-aspect ratio tubes, and hand railing solutions has accelerated Tube Divisions growth in the retail individual home builder and housing & commercial project segments. By addressing market needs with differentiated solutions, these new product lines have already scaled to 3,000 MT/month, driving long-term expansion.
- We have developed focused customers and marquee projects from Khopoli Large Diameter Pipes (‘LDP) circuit to ensure continuous order load of three months at our inhouse mills. We have also consolidated our presence in international market by generating trust and repeat orders from oveRseas clients. This has led to a year-on-year growth of 6% in Construction, Infrastructure & Industrial Projects business.
- Commissioning of 100KTPA-HF4 Mill in our Jamshedpur plant, utilising innovative Direct Forming Technology (‘DFT). This state-of-the-art mill enables the direct formation of square and rectangular tubes, enhancing productivity by eliminating roll changes, improving surface finishes, and providing superior control over corner radii. Additionally, our flexible minimum order quantity allows us to better meet market demands with specific roll setups.
- Accelerated capacity enhancement from 1.3 MT in FY2023-24 to 1.65 MT in FY2024-25. This significant growth was achieved through the upgrade of five existing mills, comprising four in our Tubes Manufacturing Plants (‘TMPs) and one in-house mill. These improvements not only boost our overall capacity but also reinforce our commitment to meeting the evolving needs of our customers in a competitive market.
- Tubes Division produced API X65 ERW pipes that have passed hydrogen compliance tests at RINA Italy, enabling transportation of 100% pure hydrogen under high pressure. This makes Tata Steel the fiRst Indian steel company to demonstrate end-to-end capabilities for Hot rolled coils to ERW pipes for transportation of hydrogen, supporting the countrys National Hydrogen Mission.
- Tubes division has commenced commercial supplies for the steel mast application in the Mumbai-Ahmedabad High-Speed Rail Project (‘MAHSR), i.e. the bullet train Project. In Phase 1, Tata Steel has been awarded approximately 11,000 MT of LOI with 100% share of business. A 5,000-ton order has already been fulfilled for the steel mast application. This project requires the manufacturing and supply of high-tensile structural steel tubes that meet Japanese standards.
- Tubes Division proudly celebrates a remarkable growth story in FY2024-25, achieving an impressive 17,000 MT in sales, in key infrastructure and construction projects. Notable contributions include 2,500 MT for Patna Airport, 1,750 MT for Imphal Airport, and 1,100 MT each for Bangalore Metro and Amazon Data Centre, demonstrating our robust presence in critical developments. Our expansive supply list also features high-impact projects like Ganga Path Launching Girder in Patna and Pune Metro, reinforcing our commitment to driving progress in Indias infrastructure landscape.
Recognitions:
- Tata Structura has been recognised as one of the ‘Most Preferred Brands 2024-25 by Team Marksmen for the category of Steel tubular sections. This award celebrates our commitment to innovation, quality, and trust.
- Tata Pipes was honoured with the prestigious
‘Heritage Building Partner of the Year at the National Awards for Excellence at Mumbai.
- Tata Structura received the ‘Prestigious Brands of India 2024 award at the Goal Fest Conclave. The brand was recognised by BARC Asia & Herald Global at Mumbai, amongst numerous brands redefining benchmarks with legacy, sustainability, and innovation.
- Tubes Division of Tata Steel received the ‘Debut Supplier Award from Mahanagar Gas Limited for our API Coated Pipes supplied in FY2024-25, highlighting our commitment to quality and timely delivery.
b) Wires Division
A division of Tata Steel Ltd, Global Wires India (‘GWI) is the largest steel wire manufacturer in India with a combined annual manufacturing capacity of 0.60 MTPA. GWI employs over 3,000 people and has manufacturing plants at Tarapur (near Mumbai), Pithampur (near Indore) as well as at Jamshedpur. GWI cateRs to the requirements of the Automobile, Infrastructure, General Engineering and Rural Retail markets with various steel wire offerings.
GWI has a strong presence in the industry, with a history dating back to 1958. It has expanded its product range to include specialised wires like Induction Hardened and Tempered (‘IHT) wires, used in the auto segment as mono-shock absorbeRs. GWI is also known for its innovative products like Aayush wire, which features a special coating developed by their R&D team to enhance durability.
Year under review
GWI achieved a record sales volume of 584 KTPA in FY2024-25, reflecting a 8% increase over FY2023-24. During the year, focus was on increasing the sales of value-added products.
- Successfully commissioned the revamping of the centralised wire rod pickling at TWP-2 as part of a sustenance project.
- Successfully installed a mechanical descaling unit with an Eco Clean facility at TWP-2, enhancing our operational capabilities and environmental sustainability.
- Awarded the honour from BIS for achieving ‘Zero Sample Failure over three consecutive years for Wire Rods under IS 7887 (MS) and IS 7904 (HC).
Recognitions
- Spring Steel Plant at Tarapur received the GOLD medal in the NAMC (National Awards for Manufacturing Competitiveness) assessment conducted by International Research Institute for Manufacturing.
- Tata Wiron LRPC (Low Relaxation Pre-stressed Concrete Steel) recognised as the ‘Most Trusted Brand of The Year at the BAM Awards (Broadcast and Media Awards) 2024, undeRscoring the brands dedication to quality and trustworthiness in the industry.
- Tata Wirons Pack in Pack Binding Wire concept won the ‘Innovative Retail Concept of the Year award at The Corporate Titan Awards in recognition of our dedication to customer-centricity and innovation.
c) Tinplate Division
The Tinplate Division, which merged with Tata Steel Limited, continues to lead the domestic tinplate industry with a market share of approximately 43% in FY2024-25. The Tinplate plant is located in Jamshedpur and has been operational for more than 100 years and continues to be a preferred choice for customers. The division operates at its full rated capacity of 380 KTPA at its Jamshedpur facility. In addition to focusing on expansion efforts, the division has also been working on increasing its downstream footprint, through sales of branded cans manufactured by Tinplate approved can makeRs. Tinplate is a preferred eco-friendly packaging medium utilised for various applications, including edible oil, processed foods, and aerosol cans. In FY2024-25, the domestic demand for tinplate increased by around 4% compared to the previous year, with expectations for continued growth in FY2025-26, driven by rising edible oil packaging needs and government initiatives promoting sustainable metal packaging.
During the FY2024-25, the division achieved a production of 375 kt, and deliveries of 371 kt, which is at par with FY 2023-24.
Year under review
- The growth in domestic demand (~4%) is mainly attributed to demand growth in edible oil (~5%) & Processed Food (~4%), while the paints segment shows signs of improvement despite some challenges.
- Ongoing operational improvements and infrastructure upgrades for long-term efficiency.
- Active work on a 300 KTPA expansion and Zero E_uent Discharge (ZED) proposal.
- Initiatives to enhance cost efficiency and explore new product development to broaden market reach.
Recognition:
The Tinplate Division successfully completed a semi-audit of Social Accountability (SA 8000) and received a recommendation for continued certification.
d) Metaliks & Ductile Iron (DI) Pipes Division
The Metaliks Division, which merged with Tata Steel Limited, operates in Kharagpur, West Bengal, with an annual installed capacity of 600 KT of Hot Metal, producing Pig Iron under the brand name ‘Tata eFee and value added Ductile Iron Pipes (DIP) branded as ‘Tata Ductura. Pig Iron serves foundries for ferrous castings, while DI Pipes are key for water transportation, sewage and irrigation purposes.
Pig Iron
Demand for Pig Iron has been subdued due to reduced demand in key segments and new market entrants, leading to high stock levels and downward price pressure. The export market remains sluggish, influenced by low prices of Russian origin Pig Iron which in turn has impacted the domestic market. Despite the challenging scenario, the division delivered a ~25% increase in sales during FY2024-25 over the previous year, while maintaining over 90% market share in the specialised Foundry Grade segment of Pig Iron, in its focussed eastern market in India.
DI Pipe
The DI Pipe industry witnessed ~38% demand surge in FY2023-24 and continued the growth in the fiRst half of FY2024-25, driven by the push to complete the targeted compliance of projects under the flagship ‘Jal Jeevan Mission of Government of India. However, the industry has been witnessing a declining trend since Q3 FY2024-25, with the full year demand being marginally higher by ~2% over FY2023-24. Price corrections of 15%-20% are likely due to slowed Government funding and increased competition. Going forward, the Metaliks Division expects a ~13% delivery rise and market share growth from 11.5% to ~12.8% despite the challenging scenario.
Short-term demand outlook is projected to be weak due to delays in new orders, but the medium to long-term outlook is optimistic due to ongoing Government projects, including a higher budget allocation for the Jal Jeevan Mission in FY2025-26 and upcoming river linking initiatives.
Year under review
- FY2024-25, the division produced ~584 KT of Hot Metal, marking a ~17% increase from FY2023-24. Production of DI Pipes ~450 KT and Pig Iron was at ~152 KT increase by 13% and 26% over FY2023-24 respectively.
- Pig Iron deliveries at 150 KT, a ~23% rise over FY2023-24, while DI Pipe deliveries at 452 KT, increased by ~14% over previous year.
- The year marked a notable increase in DI Pipe capacity, highlighted by the commissioning of three additional centrifugal casting machines (‘CCMs) and one new finishing line. Additionally, there were significant developments in the dispatch & logistics infrastructure.
- To further our commitment on environment, a Zero Effluent Discharge project has been completed, which will result in significant reduction in fresh water consumption.
e) Industrial By-Products and Management Division
The Industrial By-products Management Division (IBMD) of Tata Steel continues to lead in the adoption of Circular Economy principles as a core component of its business ethos. IBMD focuses on extracting value from by-products generated across the steel companys entire value chain, from raw materials to finished products by leveraging state-of-the-art technologies and new product and application development. The portfolio of IBMD spans across 25+ product categories with more than 250 Stock Keeping Units (SKUs). These by-products serve as key raw materials for industries which includes mainly cement, chemical, construction, infrastructure, and thermal power plants.
Year under review
- In FY2024-25, the division handled ~17 million tonnes of by-products across various locations. However, there was a 11% decline in revenue year-over-year, mainly due to limited availability of metallics for sale and subdued market sentiments throughout the year.
- In line with the organisations decarbonisation initiatives, the division supplied 1.93 million tonnes of scrap to Steel Melt Shops at TSJ, TSK, and TSM. The best-ever internal scrap supply of 1.45 million tonnes was achieved by strengthening the supply chain and developing storage capacity, resulting in a 33% reduction in external scrap procurement compared to the previous year.
- The division focused on value addition, particularly with Flat Product, in the current year witnessing significant ramp-up through the development of processing capacity in Cut-to-Length across multiple locations and the establishment of a supply chain to reach a larger customer base. The division achieved its best-ever sales of 343KT in the current year (previous best was 130 KT in FY2023-24).
- A Crushing and Screening facility for Air Cooled Blast Furnace Slag (‘ACBF) commenced at TSM to enable the supply of finished product in road and cement making application. ConveRsion of FHCR (‘Full Hard Cold Rolled) to value added annealed (Black Plate) sheet commenced through External processing Agent (‘EPA) at TSM. This initiative will help in incremental value creation for the Company.
- Tata Dureco (Ground Granulated Blast Furnace Slag - GGBS), a downstream value-added product, recorded 1.5X growth in sales with two new EPA sites commencing operations at TSJ and TSK in FY2024-25. GGBS, a green product for construction applications is extensively utilised in national infrastructure projects, including the Sualkuchi-Palashbari Bridge over the Brahmaputra River in Assam, the Manihari-Sahibganj Bridge over the Ganga River, and various other landmark projects.
- The sales of Tata Aggreto and Tata Nirman from both TSJ & TSK saw further growth. These products have been extensively used in National Highways and Pradhan Mantri Gram Sadak Yojana projects in Jharkhand & Odisha.
- IBMD undertook its fiRst-ever export sale of Crude Benzol from its TSM plant, securing incremental value compared to the domestic market.
Recognition
Tata Steel received the RASHTA Award at the 10th India Construction Festival under the category of Best Use of Waste Material Recycling in Road Construction. f) Ferro Alloys and Minerals Division
The Companys Ferro Alloys and Minerals Division (‘FAMD) is among Indias leading produceRs of Ferro Chrome and Manganese alloys, with production facilities integrated across four Indian States and having a global customer base. FAMD has captive plants at Joda, Bamnipal, and Gopalpur and has Ferro Processing Centres (‘FPCs) under business partnering agreement for production of Chrome and Manganese Alloys.
FAMD operates 3 chromite mines – Sukinda, Saruabil & Kamarda and 4 manganese mines – Joda West, Bamebari, Tiringpahar and Khondbond. Presently, FAMD has applied for surrender of its Sukinda Chromite Mine to the Government of Odisha.
Note: Production and sales for FY25, FY24 and FY23 include Tata Steel Mining Limited post-merger.
During FY2024-25, focus was on increasing Value-Added Product sales to enhance margins and realisations and new Value Added (Low Silicon) Ferro Chrome market was developed both in Domestic and Exports market. The production was lower primarily on account of lower Chrome ore production. During FY2024-25, deliveries were lower over FY2023-24 primarily due to lower sales of Chrome ore post increase in Government notified royalty rates. The Global Steel and Stainless-Steel industry witnessed dampened market sentiments in FY2024-25 coupled with excessive trade surplus from China due to its weak domestic demand.
Year under review
- FAMD completed successful trials for the Premium Product - Low Phosphorus Ferrochrome and has stabilised production to meet VAP requirements.
- The Gopalpur plant produced and dispatched 112 tons of premium low silicon ferrochrome to Rotterdam, Netherlands.
Recognition
- FAMD has been awarded for Innovation in Sustainable Technologies at the second edition of Annual Sustainability Symposium and Excellence Awards 2024 organised by the Indian Chamber of Commerce.
- FAMDs Ferro Alloys Plants (FAP), along with its Manganese and Chromite Mines were honoured with the prestigious Kalinga Safety Excellence Award in Platinum and Gold categories at the National Safety Conclave – 2024, organised by the Institute of Quality and Environment Management Services (IQEMS).
g) Bearings Division
Tata Steels Bearings Division is one of Indias quality Bearing manufactureRs, with its manufacturing facility situated in Kharagpur, West Bengal, boasting an annual production capacity of ~40 million bearings. The division is certified under IATF 16949 (International Automotive Task Force) and ISO 45001, undeRscoring its commitment to quality and safety. Renowned for serving both the Original Equipment (OE) and aftermarket segments, it cateRs to esteemed OE two-wheeler customers and maintains a robust aftermarket network distributed across the country.
During the year under review, the division produced and achieved deliveries of ~36 million numbeRs, marking an increase of 2 million over FY2023-24. The division focused on enhancing productivity and boosting retail sales while maintaining tight control over costs.
Year under review
- Achieved its best-ever sales in the aftermarket segment with 7.04 million bearings.
- Continued development of bearings for electric vehicle applications, transitioning from a focus on two-wheeleRs in FY2023-24 to EV commercial vehicles through joint product development with Tata MotoRs in FY2024-25.
- Launched an innovative skill transition program, ‘Kriyaveer, to enhance technical skills of semi-skilled and new recruits through training by experienced employees.
b) Marketing and Sales
During FY2024-25, the Company recorded sales of 20.94 MT, recording a growth of 5%, Y-o-Y.
Sales-performance are summarised as below:
| FY25 | FY24 | |
| Automotive & Special products | 3.11 | 3.19 |
| Branded Products, Retail & Solutions | 6.98 | 6.53 |
| Industrial Products & Projects | 7.25 | 7.40 |
| Domestic | 17.34 | 17.12 |
| Exports | 1.22 | 1.04 |
| Domestic + Exports | 18.56 | 18.16 |
| TransfeRs (Tinplate*, Wires, Tubes, IBMD, Agrico) | 2.38 | 1.75 |
| Total Deliveries | 20.94 | 19.91 |
* Includes sales of Tinplate Company of India (TCIL) after its amalgamation in Tata Steel Ltd w.e.f. January 15, 2024.
i) Automotive and Special Products (18% of Domestic sales):
In FY2024-25, the Passenger Vehicles (PV) industry in India experienced moderate growth of 2%, following a robust surge in demand after the pandemic. In contrast, the Commercial Vehicles segment faced a decline of 3%, influenced by the general elections in Q1 FY2024-25 and a slowdown in infrastructure projects and mining activities. Despite these mixed industry trends, Tata Steel effectively maintained its leadeRship position in the Automotive Segment, achieving deliveries of 3.1 MT. This achievement was driven by a strategic focus on new product development, particularly in high-strength steels, and a high share of business in new model launches. The Company continued to innovate, developing new products tailored to the future needs of automotive OEMs. Notably, Tata Steel became the fiRst domestic steel supplier to localise Hot Rolled CP780 in India. Furthermore, Tata Steel, through JCAPCPL, commenced supplying Cold Rolled Advanced High Strength Steel (AHSS) DP780, empowering OEMs to puRsue lightweighting initiatives effectively. Collaboration with a key customer led to the development of a chrome-free secondary coating for fuel tank applications, enabling higher ethanol blending with gasoline. To meet the rising demand for high-tensile steel, Tata Steel commissioned its new Continuous Annealing Line (CAL) at Kalinganagar. In FY2024-25, CAL secured facility approvals from major PV OEMs, paving the way for sample submissions for grade approvals. This will accelerate the ramp-up of value-added products within the Automotive Segment. Tata Steel continued to expand its service centre network across major Auto Hubs, enhancing Just-in-Time service offerings. The Company continued to enhance Advanced Technical Support to automotive customers through technical engagement workshops conducted with key Original Equipment ManufactureRs (OEMs) in the field of VAVE (Value Analysis and Value Engineering) and EVI (Early vendor involvement). The Company expanded its speciality steel long product portfolio, developing over 50 new products, catering to two-wheeleRs, passenger vehicles, and bearings. Key OEM approvals were secured in preparation for the upcoming Combi mill. Additionally, the rollout of 10 new Customer Service Teams (CSTs) has been initiated, focusing on key manufactureRs in the forging and fastener segment.
The Companys outstanding achievements have been recognised through an array of prestigious awards, including Best Supplier accolades across multiple categories, an Appreciation Award for dedication and commitment to excellence, the Going Extra Mile Award, and the ZERO PPM Award, among Others. The Gold Awards for Superlative Performance in Agility and Impactful Innovation further undeRscore Tata Steels relentless puRsuit of excellence. Additionally, the Company has celebrated joint milestone achievements with key OEMs, reinforcing its longstanding relationships and superior performance in the automotive sphere.
ii) Branded Products and Retail (40% of Domestic sales):
Branded Products and Retail recorded sales of approximately 7 MT, reflecting a 7% Y-o-Y growth. Tata Steels flagship Emerging Corporate Account (ECA) brands, Tata Astrum (hot-rolled) and Tata Steelium (cold-rolled), achieved a combined record annual sales of 3.8 MT, servicing over 11,000 MSME customers across more than 80 microsegments. The ‘Create platform for driving VIU initiatives with ECAs has enabled impactful engagement with customers and delivered value to them through new product development and technical & product application support. In FY2024-25, Branded Products and Retail (BPR) division organised 36 such ‘Create sessions with discerning ECA customers. Tata Steel has developed Boron steel grades customised to the specific requirements of the agricultural equipment export segment, strengthening its footprint in the market and fostering deeper relationship with the customers. Tata Steel has successfully initiated supplies of E450 copper for lightweight RDSO-designed wagons, facilitating a shift in Indian Railways from stainless steel to carbon steel for rolled formed sections. To enhance customer engagement, Tata Steel collaborated with IIT Bombay, Powai to provide technical knowledge to clients in the railways, automotive, and appliance sectoRs. The Company also commenced supplies of Cold Rolled steel from the new 0.9 MTPA CAL at Kalinganagar to meet customer expectations. It has organised a focused ECA customers meet to undeRstand the expectations for products from the new facility.
The Tata Tiscon retail brand for Rebar achieved record sales of 2.4 MT, representing 19% year-on-year growth. This success was supported by the addition of 1,750 new dealeRs, bringing the total to over 10,000 retail dealeRs across 8,500 pin codes. The brand engaged more than 600,000 consumeRs and 18,000 active influenceRs, reaching a milestone of 150,000 ‘Golden Home ConsumeRs of those buying more than 4 tons in FY25. Additionally, Tata Tiscon Retail is undergoing a transformation through Aashiyana, an e-commerce platform targeting the unorganised Individual Home Building sector in small towns, onboarding around 10,000 steel retaileRs into the digital economy. This initiative, powered by AI-driven recommendations for enhanced customer experience, generated a gross merchandise value (GMV) of Rs.3,550 crore in FY2024-25, approximately a 60% increase Y-o-Y by serving 1 lakh unique customers. To meet the needs of undeRserved customer segments, including furniture, almirah, panel, and small fabricatoRs, Tata Steel launched ‘Tata Steelium Super, its retail brand for cold-rolled sheets, from the Sahibabad and Khopoli units. Previously, these sheets were produced exclusively at the Angul plant. This expansion enables a fragmented and unorganised customer base to access high-quality products for retail applications. Additionally, Tata Steelium Super achieved its best annual sales performance to date, experiencing a Y-o-Y growth of 15%.
iii) Industrial Products, Projects and Exports (42% of domestic sales):
Tata Steel continued its focus on Engineering segments and Value-Added Products through product mix enrichment, deeper customer connects and new product developments. The Engineering Segments achieved record sales of 952 KT, reflecting a year-on-year growth of 19.4% and contributed to the construction of around 2,500 kilometeRs of oil and gas pipelines, the establishment of approximately 53 million square feet of pre-engineered building (PEB) structures, the production of about 25,000 construction equipment. In line with its long-term aspiration, Tata Steel forayed into the value accretive segment of Shipbuilding through supplies to three of Indias biggest shipbuildeRs in ABS (American Bureau of Shipping), DNV (Det NoRske Veritas) and IRS (Indian Register of Shipping) approved HR plates. In addition, Tata Steel obtained High strength X65 sour grade approval, paving the way for further penetration into international markets within the Oil and Gas sector. Furthermore, Tata Steel became the fiRst Indian steel company to achieve end-to-end product capability for hydrogen transportation with the development of hydrogen grade API-C65-H ERW pipes. Furthermore, Tata Steel launched the ‘Wagon Way forum to strengthen its connections with wagon manufacturing customers. Through these initiatives, Tata Steel demonstrates its dedication to adapting and meeting the evolving needs of various industries.
As a result of its consistent focus on product quality and timely delivery, Tata Steel has become the only steel supplier in India who has been recertified for the supplier excellence recognition for the second consecutive year, in FY2024-25 by leading construction equipment OEM. In FY2024-25, Tata Steel solidi_ed its position in the construction and infrastructure sectoRs. The Companys innovative offerings played a vital role in significant national projects, including the Mumbai-Ahmedabad High-Speed Rail and Indias longest river bridge, the Dhubri-Phulbari Bridge (Indias longest river bridge in Assam) and Tata Semiconductor factory in Dholera. Tata Steel is transforming construction practices through a network of 31 digitally connected reinforcement solutions construction service centres, leading to a 33% year-on-year growth in ready-to-use reinforcement solutions. These service centres are equipped with state-of-the-art automated machinery, ensuring a continuously evolving range of offerings that include cut-and-bend services, engineered meshes, rebar threading, and bore pile cages. In FY2024-25, Tata Steel has enhanced its construction segment portfolio by introducing Plate Fabricated Sections, Bore pile cages and providing design and detailing services. Tata Steel has developed STK500 & STK540 hollow sections as per Japanese standard and became the sole supplier for steel mast application in Mumbai Ahmedabad High speed Rail project. Tata Steel has launched its fiRst ever ‘One Construction Customer Service Team, designed to collaborate with leading construction firms to advance sustainable, efficient, and modular construction practices. Overall, Tata Steels strategic initiatives and innovative solutions position it as a vital player in the evolving landscape of construction and infrastructure, ensuring continued growth and value creation for its stakeholdeRs.
Tata Steel unveiled the ‘Billion Impressions sculpture at Bhagwan BiRsa Munda Smriti Park in Ranchi. Inspired by a human thumb impression, the sculpture is crafted from 16 MT of Tata Structura YST 355 steel tubes. This design was the winning entry in the 2021 edition of Notions of India, an international competition promoting usage of Hollow sections in construction.
Downstream business has registered a growth of ~9% Y-o-Y with ~1.2 MT supplies in FY25 and strengthening its presence in renewable energy segment to support GOIs ambitious goal of 500 GW of renewable energy-mix by 2028 by suppling GL to Solar segment. Tata Steel has pioneered in development of innovative Poly-coated steel for refrigerator door segment. In PEB business, developed market in Purlin, Decking & Sandwich Panel segments becoming preferred & certified supplier for key thermal power plant projects. Tata steel is further consolidating its leadeRship position in Continuous Welding Electrode segment by achieving approximately 29% growth, supported by the commissioning of the worlds longest Stelmor Conveyor line and a state-of-the-art coil handling system in the Jamshedpur wire rod mill.
Digital Initiatives:
Tata Steel is driving digital transformation to enhance customer centricity. In FY2024-25, the Company introduced a QR-based feedback system for real-time customer input and launched TSL CARes, a Generative AI-enabled platform for 24/7 complaint resolution. The COMPASS digital platform has been improved with new features for better supply chain visibility.
Aashiyana, Indias largest e-commerce platform for homebuilding, reached 1.1 lakh users and added services like Material Estimator and Design Library, fostering informed decision-making. It has streamlined the customer experience via chatbots and WhatsApp, achieving a Net Promoter Score of 77, up from 65 in FY2023-24. Tata Steels Sampoorna NXT app upgraded the user experience for over 60,000 retail partneRs. Additionally, Tata Steel Nest-In implemented QR-code tracking and a digital compliance dashboard for Light Gauge Steel Framing projects, along with a customer complaint management system.
The Company also transformed DigECA into a comprehensive digital platform for MSMEs, granting access to industry best practices, seamless order inquiries, diveRse payment options, and order tracking. Since its launch in Q3 FY2024-25, over 1,000 MSMEs have been onboarded.
In summary, Tata Steels strategic initiatives, focus on innovation, and robust market performance position it for continued growth and leadeRship in the steel industry.
c) Engineering & Projects
FY2024-25 has been a remarkable year for Engineering & Projects (‘E&P) Division as it successfully commissioned many critical projects. Kalinganagar expansion project from 3 MTPA to 8 MTPA is nearing completion as we commissioned one of the largest Blast Furnace in India, Coke Plant, Reheating Furnace at HSM, Basic Oxygen Furnace at Steel Melting Shop (‘SMS), Raw Material Handling Facilities (‘RMHS), Continuous Annealing Line, Line-1 of Air Separation Unit (‘ASU) and internal Rail Logistics facilities. Associated raw material facilities like Iron Ore Processing Plant (‘IOPP) at Noamundi, Railway Siding and Rapid Loading System at Noamundi and Joda were also commissioned. Most of these facilities were built using discrete packaging mode and small vendoRs.
E&P has also made focussed efforts towards benchmarking of construction practices with China for faster execution and lower cost. As global steel prices continue to remain under pressure, various value accretive high return projects are being prioritised. Significant progress has been made in Electric Arc Furnace (‘EAF) project at Ludhiana Punjab, India which will contribute significantly towards decarbonisation journey of Tata Steel. Commissioning of 1X1800 TPD Air Separation Unit (‘ASU) at Jamshedpur is under progress. Many other growth and sustenance projects like downstream facilities at Kalinganagar, Relining of G-Blast Furnace at Jamshedpur, New Power Plant and Combi Mill at Jamshedpur, new Oxygen Plant at Meramandali and Iron Ore Processing Plant at Joda are progressing well. During FY2024-25, the division successfully achieved following milestones across various projects such as:
Raw Material & Others:
- Commissioning of 6 MTPA Iron Ore Processing Plant at Noamundi.
- Railway Siding and Rapid Loading System at Joda.
- New Hospitals at Noamundi and West Bokaro.
Tata Steel Jamshedpur:
- 100 KTPA Structural Tube Mill, equipped with direct forming technology and automatic tube bundle loading facility.
- Bio-oxidation Tertiary Treatment Plant.
- Upgradation of Precision Tube Mill.
Tata Steel Kalinganagar:
- Commissioning of BF#2 of 5 MTPA capacity – the largest blast furnace in India.
- Central E_uent Treatment Plant (CETP) to achieve Zero Liquid Discharge at TSK.
- Continuous Annealing Line of 0.9 MTPA capacity commissioned.
- Battery #3A, Coke Plant will increase the Coke Making capacity by 0.75 MTPA.
- Commissioning of Air Separation Unit (ASU) Train#1.
- 10.1 MW Solar power project commissioned.
- Completion of in-plant Rail Infrastructure for Raw Material, Finished Goods & Hot Metal movement (Total track length – 26 Kms).
Tata Steel Meramandali:
- Completion of Coke Dry Quenching (‘CDQ).
- Completion of 6 nos. Dust Extraction (‘DE) systems in Angul.
- Command Control Centre with CCTV, feed from 1,300 cameras across Plant.
Recognitions:
- During the year, the E&P division received following accolades from Indian Value Engineering Society (INVEST) during its 40th Annual International Conference:
- Muthiah Kasi Award for ‘Value study on optimisation of In-bound Logistic of Finished Good Coil at Exit area in Hot Rolled Pickling & Galvanising Line Project.
- KSRM Sastry Award for ‘Value study for Capex Optimisation for Vehicle Under Pass of Runway End Safety Area at Sonari Airport, Jamshedpur.
- Mohta Award for ‘Value Optimisation of Overland Conveying System at Noamundi Iron Ore Mines.
VI. FINANCIAL PERFORMANCE
Standalone Performance
1. Tata Steel Limited
During FY2024-25, the Company recorded a profit after tax of Rs.13,970 crore (previous year restated Rs.15,662 crore).
The decrease is primarily on account of lower operating profits as compared to the previous year attributable to significant decline in steel prices due to cheap imports. This was partly offset by higher sales volume and lower raw material costs due to decrease in coking coal prices. Moreover, Finance cost was higher due to higher debt in the standalone balance sheet while part of the debt in subsidiaries was repaid. Depreciation and amortisation charge increased due to additional capitalisation of facilities during the year. The basic and diluted earnings for the FY2024-25 were at Rs.11.19 per share each (previous year: basic and diluted: Rs.12.55 per share and Rs.12.54 per share respectively).
The analysis of major items of the financial statements is given below:
a) Revenue from operations
| FY25 | FY24 | Change (%) | |
| Sale of products | 1,29,304 | 1,37,286 | (6) |
| Sale of power and water | 1,562 | 1,800 | (13) |
| Other operating revenue | 1,651 | 1,847 | (11) |
| Total revenue from operations | 1,32,517 | 1,40,933 | (6) |
During the year under review, sale of products was lower by ~6% as compared to the previous year, primarily due to significant decrease in realisations in domestic as well as export markets attributable to cheap Chinese imports, partly offset by higher steel deliveries by 1.03 MT owing to higher production. Sale of power and water and other operating income decreased in line with decrease in demand and prices.
b) Purchases of stock-in-trade
| FY25 | FY24 | Change (%) | |
| Purchases of stock-in-trade | 9,825 | 9,700 | 1 |
During the year under review, purchases of stock-in-trade was marginally higher as compared to the previous financial year primarily due to higher purchase of traded rebaRs from group companies (NINL and TSTH). These were partly offset by decrease in external scrap purchases as own generated pooled iron was utilised.
c) Cost of materials consumed
| FY25 | FY24 | Change (%) | |
| Cost of materials consumed | 44,089 | 48,516 | (9) |
During the year under review, cost of materials consumed reduced primarily due to decline in imported coking coal prices, along with lower quantities due to higher use of own coal, partly offset by higher consumption of purchased coke at Kalinganagar Phase -II till the completion of coke oven.
d) Employee benefits expense
| FY25 | FY24 | Change (%) | |
| Employee benefits expense | 8,010 | 7,473 | 7 |
During the year under review, the employee benefits expense increased primarily due to salary revisions and its consequential impact on retirement provisions along with increase in staff welfare expenses.
e) Depreciation and amortisation expense
| FY25 | FY24 | Change (%) | |
| Depreciation and amortisation expense | 6,253 | 6,009 | 4 |
The depreciation charge during the year is higher as compared to the previous year due to capitalisation of major facilities for Tata Steel Kalinganagar phase-II expansion.
f) Other expenses
| FY25 | FY24 | Change (%) | |
| Consumption of stores and spares | 6,477 | 6,574 | (1) |
| RepaiRs and maintenance | 5,858 | 6,121 | (4) |
| Relining expenses | 204 | 230 | (11) |
| Power, fuel and industrial gases | 7,111 | 7,207 | (1) |
| ConveRsion charges | 2,410 | 2,153 | 12 |
| Freight and handling charges | 7,702 | 6,738 | 14 |
| Rent and hire charges | 463 | 380 | 22 |
| Mining premium and Royalties | 5,137 | 6,511 | (21) |
| Rates and taxes | 1,884 | 2,340 | (19) |
| Insurance charges | 229 | 271 | (15) |
| Commission and discounts | 339 | 286 | 18 |
| Allowance for credit losses/ provision for advances | (5) | 110 | (105) |
| Others | 5,361 | 6,942 | (23) |
| Less:- Expenditure (other than interest) transferred to capital & other accounts | (774) | (987) | (22) |
| Total Other expenses | 42,396 | 44,876 | (6) |
Other expenses were lower as compared to the previous financial year primarily due to decrease in Royalty charges mainly due to lower production of Chrome ore along with lower additional royalty on iron ore due to lower quantities of iron ore sold during the year. Decrease in rates and taxes were on account of reveRsal of old liability for water charges during the year. Moreover, there was a decrease in other expenses mainly due to write back of old liabilities no longer required. These decreases were partly offset by, increase in freight and handling charges during the year primarily due to increase in deliveries along with lower foreign exchange revaluation gain on inter-company loans/receivables during the current year post replacement of loan to group company with equity.
g) Finance costs and net finance costs
| FY25 | FY24 | Change (%) | |
| Finance costs | 4,238 | 4,101 | 3 |
| Net Finance costs | 2,343 | 2,165 | 8 |
During the year under review, finance costs increased primarily on account of higher interest on domestic term loans owing to fresh utilisation during the current financial year along with higher interest on Debentures owing to fresh drawls during the year. Higher interest on short-term borrowings and commercial papersattributable to higher balances during the year. The increases were partly offset by higher capitalisation during the year.
Net finance charges were higher in line with higher finance cost and lower interest income.
| FY25 | FY24 | Change (%) | |
| Exceptional items | (902) | (3,488) | N.A. |
The details of exceptional items for the current year and previous year are as follows:
- Provision for Impairment of non-current assets (net): NIL (previous year: Rs.179 crore mainly in Property Plant and Equipment including intangibles for Sukinda mines).
- Provision for Impairment of investments/doubtful loans and advances/other financial assets (net): Rs.75 crore (previous year: Rs.2,824 crore).
- Restructuring and other provisions - NIL (previous year: Rs.405 crore for closure of Sukinda mines).
- Contribution to Electoral Trust: Rs.173 crore (previous year: NIL)
- Provision for Employee Separation scheme (‘ESS) under Sunehere Bhavishya Ki Yojana (‘SBKY) scheme and other schemes amounting to Rs.671 crore (previous year: Rs.99 crore).
- Fair valuation gain on investments classified as fair value through profit and loss (net) amounting to Rs.17 crore (previous year: gain of Rs.18 crore).
i) Property, plant and equipment (PPE) including intangibles and right of use assets
| FY25 | FY24 | Change (%) | |
| Goodwill | 13 | 13 | - |
| Property, Plant and Equipment | 93,204 | 92,358 | 1 |
| Capital work-in-progress | 34,189 | 27,563 | 24 |
| Intangible assets | 919 | 968 | (5) |
| Intangible assets under development | 671 | 533 | 26 |
| Right of use Assets | 5,343 | 5,066 | 5 |
| Total PPE including intangibles & right of use assets | 1,34,339 | 1,26,501 | 6 |
The movement in total PPE including intangibles is higher primarily on account of increase in capital work-in-progress mainly at Kalinganagar Phase-II and capitalisation of major facilities for Tata Steel Kalinganagar and mines, which was offset by depreciation and amortisation charge during the year.
j) Investments
| FY25 | FY24 | Change (%) | |
| Investment in Subsidiary, JVs and Associates | 64,214 | 58,296 | 10 |
| Investments - Non-current | 8,485 | 7,944 | 7 |
| Investments - Current | 0 | 586 | (100) |
| Total Investments | 72,699 | 66,826 | 9 |
The increase in investments was predominantly on account of replacement of Inter-corporate Deposit to T Steel Holdings Pte. Ltd. with equity during the year along with fresh investment made during the year, which was partly offset by fair valuation loss on investments during the year. Increase in Non-current investments mainly due to interest accrued on preference shares of in Neelachal Ispat Nigam Limited (‘NINL) and purchase of investment in NINL, partly offset by decrease in the market value of quoted investments. These increases were partly offset by decrease in current investments post sale of units of mutual funds.
k) Inventories
| FY25 | FY24 | Change (%) | |
| Finished and semi-finished goods including stock in trade | 7,878 | 8,209 | (4) |
| Work-in-progress | 0 | 0 | n.a. |
| Raw materials | 10,385 | 11,593 | (10) |
| Stores and spares | 4,671 | 4,854 | (4) |
| Total Inventories | 22,934 | 24,656 | (7) |
Finished and semi-finished inventory decreased as compared to previous year mainly due to decrease in cost of finished and semi-finished goods along with decrease in stock quantities as compared to the previous year due to higher deliveries.
Raw material inventories have decreased over the previous year primarily on account of decrease in the prices of imported coking coal during the year, along with lower quantity of chrome ore over previous year. Stores and spares inventory decreased over the previous year as a result of structured drive to reduce inventory.
| FY25 | FY24 | Change (%) | |
| Gross trade receivables | 1,796 | 1,855 | (3) |
| Less: allowance for credit losses | 230 | 259 | (11) |
| Net trade receivables | 1,566 | 1,596 | (2) |
Trade receivables reduced marginally as compared to that of the previous year primarily due to better collections from steel debtoRs along with decrease in steel prices. Decrease at profit centres primarily at FAMD due to decrease in sales attributable to lower volumes and decrease at Wires Division, which was partly offset by increase in outstanding receivables at the Metaliks division.
m) Gross debt and Net debt
| FY25 | FY24 | Change (%) | |
| Gross debt | 63,223 | 43,837 | 44 |
| Less: Cash and Bank balances (incl. Non-current balances) | 4,250 | 6,070 | (30) |
| Less: Current investments | 0 | 586 | (100) |
| Net Debt | 58,973 | 37,181 | 59 |
Gross debt was significantly higher due to utilisation of various term loans and Debentures during the year majorly for funding capital expansion projects and investments, along with net borrowings of short-term loans during the year.
Net debt was significantly higher as compared to previous year. This is attributable to increase in the Gross debt given efforts to onshore debt along with decrease in cash and bank balances including current investments.
n) Cash Flows
| FY25 | FY24 | Change (%) | |
| Net Cash from/(used in) operating activities | 23,880 | 27,325 | (13) |
| Net Cash from/(used in) investing activities | (34,606) | (15,703) | (120) |
| Net Cash from/(used in) financing activities | 9,281 | (8,277) | 212 |
| Net increase/(decrease) in cash and cash equivalents | (1,445) | 3,345 | (143) |
Net cash flow from/(used in) operating activities
During the year under review, the net cash generated from operating activities was Rs.23,880 crore as compared to Rs.27,325 crore during the previous year. The cash inflow from operating profit before working capital changes and direct taxes during the current year was H 25,681 crore as compared to inflow of Rs.29,562 crore during the previous year due to decrease in operating profits. Cash inflow from working capital changes in FY2024-25 is mainly due to decrease in inventories by Rs.1,584 crore primarily due to decrease in prices of finished goods and raw materials. These decreases were partly offset by increase in Non-current/Current financial and other assets by Rs.549 crore mainly in advances with public bodies and decrease in Non-current/current financial and other liabilities/provisions by Rs.523 crore primarily due to write back of old liabilities no longer required. The income taxes paid (net of refund of Rs.1,913 crore received for earlier years) during the current year was Rs.2,314 crore as compared to Rs.5,045 crore during previous financial year.
Net cash flow from/(used in) investing activities
During the year under review, the net cash outflow from investing activities amounted to Rs.34,606 crore as compared to Rs.15,703 crore during the previous year. The outflow during the current year broadly represents capex of Rs.11,106 crore, investments in subsidiaries of Rs.24,576 crore mainly in T Steel Holdings Pte. Ltd (for supporting debt repayments in oveRseas subsidiaries, restructuring costs and transition losses in the UK), Inter Corporate Deposits (ICDs) given (net of realisation) amounting to Rs.937 crore mainly to T Steel Holdings Pte. Ltd, partly offset by net sale of current investments of Rs.783 crore and advance received on sale of asset Rs.750 crore.
Net cash flow from/(used in) financing activities
During the year under review, the net cash inflow from financing activities was H 9,281 crore as compared to an outflow of H 8,277 crore during the previous year. The inflow during the current year broadly represents additional borrowings taken (net of repayments including finance lease) of Rs.18,592 crore as against net proceeds from borrowings of Rs.1,011 crore in the previous year. The inflow was partly offset by payment of dividend of Rs.4,494 crore and payment of interest of Rs.5,114 crore.
o) Changes in Key Financial Ratios
The change in the key financial ratios as compared to previous year is stated below:
| FY25 | FY24 | Change (%) | |
| Inventory Turnover (days) | 67 | 67 | 0 |
| DebtoRs Turnover (days) | 4 | 5 | (20) |
| Current Ratio (Times) | 0.69 | 0.81 | (16) |
| Interest Coverage Ratio (Times) | 9.94 | 10.33 | (4) |
| Debt Equity 1 (Times) | 0.47 | 0.31 | 51 |
| Net Debt Equity 1 (Times) | 0.44 | 0.27 | 66 |
| EBITDA Margin (%) | 21.29 | 22.11 | (4) |
| Net Profit Margin (%) | 10.54 | 11.11 | (5) |
| Return on average Equity (%) | 10.43 | 11.18 | (7) |
Debt Equity & Net Debt Equity Ratio: Increased primarily on account of increase in borrowings during the current year for funding capital expansion projects and investments, along with net borrowings of short-term loans during the year. Net Debt further increased due to decrease in cash and bank balances including current investment.
2. Neelachal Ispat Nigam Limited
The Company completed the acquisition of Neelachal Ispat Nigam Limited (‘NINL) in the month of July, 2022. The NINL Plant is situated at Kalinganagar industrial complex of Duburi in the Jajpur district of Odisha. The primary product manufactured at NINL is Long Products, i.e. Rebar.
NINL converts its Billets into RebaRs in collaboration with Tata Steel Planning and Steel Processing Centres team. Also, in synergy with M&S team of Tata Steel, rebaRs are introduced in the Tiscon brand in the market.
The turnover and profit/(loss) of NINL for FY2024-25 are as follows:
| FY25 | FY24 | |
| Turnover | 5,701 | 5,505 |
| EBITDA | 1,067 | 53 |
| Profit before tax (PBT), before exceptional | (13) | (981) |
| Profit before tax (PBT) | (14) | (1,012) |
| Profit after tax (PAT), before exceptional | (166) | (929) |
| Profit after tax (PAT) | (167) | (960) |
The production and sales performance of NINL is given below:
| FY25 | FY24 | Change (%) | |
| Crude Steel | 0.95 | 0.66 | 44 |
| Saleable Steel | 0.90 | 0.65 | 39 |
| Sales | 0.90 | 0.65 | 39 |
During the FY2024-25, NINL produced 953 KT of crude steel which was higher by 44% over previous year due to production ramp up (FY2023-24: 663 KT). Production of Pig iron declined by 292 KT over previous year, in order to increase steel production.
Steel deliveries was 903 KT (FY2023-24: 649 KT) due to stable operations and production ramp up during the current year.
Turnover increased over FY2023-24 by Rs.196 crore primarily due to higher steel deliveries by 39% owing to stable operations during the year, partly offset by decline in steel prices during the year. EBITDA improved significantly by Rs.1,014 crore mainly due to higher production and sales and decline in input costs. The loss after tax of FY2024-25 at Rs.167 crore was lower against a loss of Rs.960 crore in FY2023-24 primarily due to better operational performance during the year.
Year under Review
- Steel Melting Shop achieved highest ever crude steel production in a fiscal year (0.95 MT).
- Blast Furnace achieved best-ever Hot Metal production in a fiscal year i.e. 1.07 MT.
- NINL achieved best-ever rebar production and sales in a fiscal year i.e. 0.9 MT.
- Power Plant achieved best ever power generation in a fiscal year i.e. 245 KMWH.
- Sinter Plant achieved highest ever Sinter Production in a fiscal year since inception i.e. 1.43 MT.
- NINL is implementing 100% utilisation of Process Solid Waste (PSW) to lower fuel costs. Additionally, the Company is adopting a leaner coal blend in its coke ovens to reduce coke costs. These initiatives are part of its strategy to enhance operational efficiency and cost-e_ectiveness.
Financial Highlights
- NINL achieved highest-ever EBITDA in a fiscal year and crossed the Rs.1,000 crore mark for the fiRst time since acquisition.
- Achieved highest ever free Cash flow in a fiscal year and crossed the Rs.1,000 crore mark for the fiRst time.
Strategy
NINL will play a critical role in Tata Steels long product growth aspirations as it gets transformed into a state-of-the-art long products complex.
NINL has captive mine to meet the Groups Iron ore requirements.
Safety and Sustainability
- NINL Plant received ISO:14001 (Environmental Management Systems - EMS) certificate.
- Consent to Establish for proposed Pulverised Coal Injection System at existing Blast Furnace received by NINL.
- NINL Mines bagged (8 Nos.) of prize in different categories during 42nd annual safety week celebration in Bhubaneshwar.
- Enhanced product mix from 0.55 MTPA Billet & 0.43 MTPA Pig Iron to 0.98 MTPA (Pig Iron or Billet either in single product or in combination) granted by Odisha State Pollution Control Board.
- Vendor incentivisation scheme introduced for 4 & 5 star rated vendor partneRs.
3. Tata Steel Downstream Products Limited
Tata Steel Downstream Products Limited (‘TSDPL) is a leader in the Flat Products Steel Service Centre (‘SSC) business and acts as a bridge between steel produceRs and end-customers. TSDPL has a pan India presence with twelve steel processing centres and eighteen distribution and sales locations. TSDPL is in the business of processing Steel coupled with services like Just-intime delivery, small lot supplies, inventory management, credit facilities, inspection, packaging and distribution. Value-added offerings of TSDPL include slitting, cut-to-length, blanking, corrugation, plate burning, fabrication, component manufacturing and steel intensive products and applications. TSDPLs products and services conform to world-class quality standards in meeting customers demand. It is a vital link in the steel supply chain and handles ~25% of FP steel of Tata Steel.
The turnover and profit/(loss) figures for the Financial Year 2024-25 are as follows:
| FY25 | FY24 | |
| Turnover | 7,374 | 7,563 |
| Profit before tax (PBT) | 255 | 275 |
| Profit after tax (PAT) | 215 | 232 |
The steel industry has been facing challenging market conditions since December 2023 which continued in FY2024-25. The steel prices remained under pressure and continued to decline on account of global macroeconomic factors. The demand from the automotive segment continued to be lower than expected especially the commercial vehicle segment which witnessed a degrowth of ~6% vis-?-vis FY 2023-24. This adversely impacted sales under the Vendor Service Model (VSM) where the TSDPLs exposure is ~57% of total distribution volumes. Despite the market challenges, TSDPL was able to achieve its highest ever dispatches and managed to keep its profit levels intact at similar levels as compared to FY2023-24 which is a testament to the Companys commitment and robust internal processes. Turnover decreased over FY2023-24 by H 189 crore primarily due to lower steel prices during the year, partly offset by higher deliveries. The profit after tax of FY2024-25 at Rs.215 crore was marginally lower against FY2023-24 by Rs.18 crore primarily due to decline in steel prices during the year.
TSDPLs performance for FY2024-25 can be summarised under its 6 strategic priority framework:
Safety & Sustainability:
TSDPL dedicatedly worked round the year towards achieving its overall objective of ‘achieving zero harm. It undertook various measures to improve the behavioural safety as well as reduce and mitigate risks such as Introduction of 5S Safety campaign, QR code-based reporting, Ghar se Ghar Tak Programmes etc. These resulted in substantial improvement in the injury rates vis-?-vis previous years (Lost Time Injury Frequency Rate for FY2024-25 was at 0.28 vs 1.35 in FY2023-24 whereas All Injury Frequency Rate for FY2024-25 was at 3.22 vs 4.49 in FY2023-24). TSDPL also remained committed towards the environment by launching several initiatives to reducing power consumption, reusing consumables, planting trees etc. On the CSR front, TSDPL impacted 75000+ lives with active volunteering efforts by employees & their families.
Customer:
The Company continued to work diligently to provide ‘Best-in-class services and solutions to its customers. TSDPL expanded its product basket to include trapesoidal cutting, chequered plates, pre-engineered building fabrication etc. It also onboarded various channel finance partneRs to facilitate credit to add value for its customers. The efforts resulted in lowest ever customer complaint resolution of 12 days, higher customer experience scores, higher delivery compliances as well as in various customer appreciations received by our Units.
Growth:
TSDPL added close to 0.7 million tonne processing capacity. Its new SSC at Sanand commenced operations through its slitting line in March 2025. New Slitting Lines, Narrow Cut-to-Length lines and Belt Bridle system were also installed at Pune, Pantnagar and Faridabad respectively during the year. The other growth projects such as at Kalinganagar are also on schedule.
Operational Excellence:
Under the Companys flagship program – ‘Lakshya 2.0, it took various initiatives to improve operational efficiency and reduce costs. The Company achieved its highest-ever EBITDA savings of more than Rs.20 crore in FY2024-25 with continued focus on TQM, yield improvement and optimising plant operations.
Digital & Innovation:
TSDPL implemented various digital tools under its ‘DigiYaan program such as Blue Yonder (an Integrated Supply Chain Management platform), Implementation of Robots for welding fabricated structures and Use of Tableau as an MIS Dashboard for data visualisation. The Company also launched an Idea Portal to promote a culture of innovation.
People:
The Company remains focused to create an engaged, competent and diveRse workforce at all levels of the organisation. It has built a performance driven culture to improve employee productivity. TSDPL fosteRs a culture of learning by providing training opportunities for its workforce to grow and deliver highest quality products and services. TSDPL continued its focus on DiveRsity and achieved 5%+ female employees in total workforce in FY2024-25.
Recognitions
- Kalinganagar Plant won the Confederation of Indian Industry – Environment Health & Safety (CII EHS) Excellence award (Winner) in Medium scale manufacturing sector.
- Pune plant won the Shreshtha Suraksha Puruskar (Silver Trophy) in the NSCI National Safety Awards (Manufacturing sector).
4. Europe Operations
The turnover and profit/(loss) figures of European Operations are given below:
| FY25 | FY24 | |
| Turnover | 76,416 | 78,144 |
| EBITDA | (3,327) | (7,612) |
| Profit before tax (PBT), before exceptional | (8,976) | (12,555) |
| Profit before tax (PBT) | (9,049) | (19,262) |
| Profit after tax (PAT), before exceptional | (8,726) | (12,896) |
| Profit after tax (PAT) | (8,799) | (19,603) |
The production and sales performance of European Operations (continuing operations) is given below:
| FY25 | FY24 | Change (%) | |
| Liquid Steel Production | 7.82 | 7.80 | 0 |
| Deliveries | 7.97 | 7.68 | 4 |
Production in FY2023-24 was at par as compared to the previous year due to lower production on account of shut down of Blast Furnaces at TSUK during the year, whereas previous year production was impacted with the reline of Blast Furnace 6 in the Netherlands. Despite the continuing subdued demand and challenging environment surrounding European steel market, our deliveries in Europe in FY2024-25 increased by ~4% compared to the previous year primarily as a result of higher production in the Netherlands.
During the year under review, the revenue stood at Rs.76,416 crore which was lower than FY2023-24. In GBP terms, revenue was lower by ~6% compared to previous year due to reduction in average revenue per tonne, partly offset by higher deliveries. European Operations reported an EBITDA loss of Rs.3,327 crore during FY2024-25 lower than the EBITDA loss of Rs.7,612 crore during FY2023-24. This significant reduction in EBITDA loss was due to improvement in TSN performance which was adversely impacted in the previous year due to Blast Furnace 6 reline. TSUK reported a higher EBITDA loss this year, primarily driven by the closure of existing ageing assets whose cost structure was further impacted due to lower volumes, whereas fixed cost take out was able to be targeted only after closure.
Tata Steel Netherlands (‘TSN)
The Blast Furnace 6 at IJmuiden Steel Works, Netherlands was back in operation following an extended reline. With completion of the repaiRs that were scheduled in the outage towards the end of FY2023-2024, the Blast Furnace 6 will be able to stay in production until TSN is ready to transition to a whole new way of producing steel. The recommissioning went well with liquid steel production at IJmuiden Steel Works during FY2024-25 at 6.8 MT, or 2.0 MT higher than the previous year.
The reporting period was a challenging year for TSN. The peRsistent downtrend in steel spreads observed in the prior year continued throughout most of 2024, as the European steel industry faced significant pressure from elevated energy prices and increased imports from China at low prices. Additionally, the general economic slowdown in Europe led to reduced market demand, further exerting downward pressure on steel selling prices. Management has acted during the year by direct cost saving measures. It has also announced the start of a transformation program, focused on productivity and cost takeouts. From a broader stakeholder peRspective, challenges peRsisted throughout the year. Public concerns, primarily focused on emissions from our Cokes and Gas Plants (CGPs), and enhanced supervision and enforcement by environmental regulatoRs in relation to our IJmuiden Steel Works continued during the year. TSN is in constructive discussions with the local provincial authorities and is preparing a future oriented plan including all improvements of the coke and gas plants environmental performance and has also intensi_ed discussions with the Environment Agency. The plan includes measures which are part of the discussions with the Netherlands government and will include solutions for current issues as well. It is also discussing appropriate measurement protocols for the future with the Environment Agency.
TSN and the Dutch State signed an Expression of Principles in 2022. In November 2023 TSN announced its plan to accelerate the transition to DRI-based green steelmaking coupled with smelting technology and an enhanced focus on reducing the impact on the environment and making TSN more circular. Discussions with the Dutch government on reaching a tailor-made agreement continued over 2024-2025 and are now in an advanced state.
With the continued support of Tata Steel, and the increased urgency to reduce our environmental impact, TSN is confident that in the coming year TSN will accelerate the process towards concluding a ‘Maatwerk support package. In the meantime, the process to obtain permits for the new facilities continued and TSN is actively engaging with the Environmental Agency and local communities. In FY2024-25 capital expenditure was focussed on the Companys future with engineering work for the technological shift required to enable the transition to carbon neutrality (Project Heracless) and on its license to operate, including expenditure on the Cokes and Gas Plants and the Roadmap Plus Program. Said Program took a big step forward with completion of the Windbreaker around raw material storage to reduce dust emissions. The construction of the DeNOx installation aimed to reduce nitrogen oxide emissions by 80% by capturing NOx compounds at the Pellet Plant, progressed on plan. On November 18, 2024, TSN appointed an experienced leader of major transformations as Chief Project and Engineering Officer (‘CPEO) and member of the Board of Management.
Tata Steel UK (‘TSUK)
Liquid steel production at Port Talbot Steel Works, Wales during FY2024-25 at 1.07 MT was lower than the previous year due to complete closure of primary steel making facilities in fiRst half of the year. During both years, the assets produced significantly below their planned outputs due to operational issues with the assets which were also near the end of their useful lives. These operational issues contributed to the restructuring and transformation of TSUK and commencement of the transition to a greener, lower steel steelmaking future in Wales. During the fiRst phase of the transition, the UK business has entered into contracts to ensure a secure supply of coil and slab arriving from trusted mills around the world to keep the downstream operations supplied and no disruption to customers. The deliveries in FY2024-25 were at 2.49 MT lower than 2.80 MT in the previous year amidst subdued demand and challenging market conditions.
In September 2024, TSUK finalised a Grant Funding Agreement (‘GFA) with the UK Government on a proposal to invest in state-of-the-art electric arc furnace (‘EAF) steelmaking at the Port Talbot site with a capital cost of Rs1.25 billion inclusive of a grant from the UK Government of up to Rs500 million. TSUK has achieved significant milestones since the signing of GFA including completion of basic engineering for the EAF and signing of contracts with leading metals technology manufactureRs to deliver EAF and additional advanced steelmaking equipment.
On February 18, 2025, Neath Port Talbot Councils Planning Committee approved TSUK proposals to deliver EAF steelmaking in Port Talbot which will enable commencement of the construction work on Port Talbot site in the summer of 2025.
The UK business has also launched a programme to control spend and achieve targeted reduction in fixed costs to make the business sustainable during the EAF construction phase and thereafter. Some of the initiatives being worked upon are around achieving economies in respect of sourcing of substrate material, optimising sales mix, leveraging on closure of heavy end operations to minimise fixed costs, consolidation of operations across downstream sites and optimisation of corporate overheads through various spend control measures.
5. Tata Steel Thailand (TSTH)
During FY2024-25, total steel consumption in Thailand aggregated to 16.3 million tonnes, decreased slightly (by -0.2%) as compared to previous year. Import volume of 11.4 million tonnes, at 69.9% of the demand for steel in Thailand, expanded by 1.7% Y-o-Y.
The long products consumption in Thailand was 6.23 MT, with a marginal increase of 0.6% Y-o-Y. Import volume of 2.89 million tonnes, 46.4% of the demand for long product in Thailand, increased by 9.9% Y-o-Y. Meanwhile, there is a continuous stream of imported goods entering Thailand from China and ASEAN countries, especially wire rod products.
The Thai GDP growth for 2024 was below expectations. Nevertheless, the economy witnessed a continued recovery where 2024 GDP expanded 2.5% (vs 2023s 2.0%).
Sentiment towards Thailands outlook may be negative, as reflected in the significant c.15% fall in Thai equities. Thai economy is projected to expand in the range of 2.3-3.3% in Calendar Year 2025. The main supporting factors are the increase in government expenditure, particularly investment spending, expansion of private consumption and the growth of the tourism and export sectoRs. Meanwhile, Thailand may face the risk of U.S. trade protection measures that are likely to impact the exports.
Domestic deliveries during the current year were comparatively lower on account of increased competition in rebaRs from induction furnace produceRs and higher imports of wire rods from China. This was made up with increased quantum of exports and accordingly, overall deliveries were higher during the current financial year.
The turnover and profit/(loss) of TSTH for the FY2024-25 are as follows:
| FY25 | FY24 | |
| Turnover | 6,055 | 5,829 |
| EBITDA | 106 | 44 |
| Profit before tax (PBT), before exceptional | 38 | (30) |
| Profit before tax (PBT) | 101 | 22 |
| Profit after tax (PAT), before exceptional | 18 | (29) |
| Profit after tax (PAT) | 81 | 23 |
The production and sales performance of TSTH is given below:
| FY25 | FY24 | Change (%) | |
| Saleable Steel | 1.19 | 1.12 | 6 |
| Sales | 1.19 | 1.12 | 7 |
During the FY2024-25, the saleable steel production increased by 0.07 MT and sales improved by 0.07 MT over FY2023-24. The turnover increased by Rs.227 crore primarily due to increase in deliveries during the year. The profit after tax was higher by Rs.58 crore on account of higher operating profits owing to higher sales and a one-time gain from sale of an unused plot of land.
Year under Review
- Completion of 11 MW Solar roof project with a potential of approximately 20 MB savings per year.
- Highest export sales of 244kt - 20% of total sales volume.
- Monetisation of unused land assets.
Recognitions
- TSTH received ESG Ratings in Rank A from the Stock Exchange of Thailand (SET) for the performance in Environment, Social and Governance.
- TSTHs Corporate Governance score by SET improved in 2024 over 2023 and continues to be in the highest category as per the stock exchange criteria.
Safety, Health & Environment
- Tata Steel Manufacturing (Thailand) Public Company Limited (TSMT) - SCSC, and SISCO received the certificates of Excellent Practices Establishment on Occupational Safety & Health from Department of Labour Protection and Welfare.
- TSMT – NTS, SCSC, SISCO received ‘Green Star Award 2024 Level 4 from the Industrial Estate Authority of Thailand.
6. The Siam Industrial Wire Co. Ltd. (‘SIW) & TSN Wires Co. Ltd. (‘TSN Wires)
Siam Industrial Wire Company Ltd. is a leading manufacturer of steel wire products, specialising in reinforcement solutions for the construction industry. Key products include Prestressed Concrete (PC) Strand, PC Wire, Wire Mesh, and Cold Drawn Wires, serving both public infrastructure and private construction projects like housing, factories, and commercial buildings. SIWs leadeRship in the PC Strand and PC Wire segment in Thailand, with a substantial 34% market share, highlights its dominant position in the industry. The Companys strong export presence in over 70 countries further undeRscores its commitment to global reach and competitiveness in the market. This combination of market share and international operations positions SIW as a key player in the construction materials sector, facilitating infrastructure development both locally and abroad.
TSN Wires, a 60% subsidiary of SIW, manufactures Galvanised Wires in Rayong, Thailand. TSN Wires serves industries such as fencing, poultry, farming, and paper pulp, offering high-quality galvanised wire solutions. TSN Wires is the market leader in Galvanised wire in Thailand with a market share of 47%.
Public sector projects experienced delays due to the slowdown in government investment in mega projects. TSN Wires Galvanised wire business remained the same, driven by the fencing segment from the private sector and gabion from the public sector.
Export sales are still facing some challenges from oveRsupply of Chinese steel products with severe price competition in many countries i.e. ASEAN, Australia, etc. Demand outlook in Thailand is expected to rise with infrastructure spending from the Government while in export market, SIW is focusing on key markets such as Europe, ASEAN and US. However, there are challenges on the ‘Trade Barrier such as Vietnam Anti-dumping and US-Section 232 with import duty of 11% and 25% respectively. Another concern is about requirements related to carbon emission, especially from European customers. Galvanised business is facing challenge in the fencing segment demand, however gabion segment is expected to improve from government projects.
The turnover and profit/(loss) of SIW for the Financial Year 2024-25 are as follows:
| FY25 | FY24 | |
| Turnover | 1,431 | 1,416 |
| EBITDA | 20 | 67 |
| Profit before tax (PBT) | 8 | 41 |
| Profit after tax (PAT) | 7 | 29 |
The production and sales performance of SIW is given below:
| FY25 | FY24 | Change (%) | |
| Saleable Steel | 0.197 | 0.202 | (3) |
| Sales | 0.227 | 0.214 | 6 |
The turnover and profit/(loss) of TSN Wires for the Financial Year 2024-25 are as follows:
| FY25 | FY24 | |
| Turnover | 275 | 251 |
| EBITDA | 5 | (1) |
| Profit before tax (PBT) | (10) | (17) |
| Profit after tax (PAT) | (10) | (17) |
The production and sales performance of TSN Wires is given below:
| FY25 | FY24 | Change (%) | |
| Saleable Steel | 0.037 | 0.034 | 8 |
| Sales | 0.035 | 0.035 | 1 |
During FY2024-25, the combined saleable steel production (SIW & TSN Wires) decreased marginally by 1% due to subdued demand, whereas the deliveries were higher by 5%. The combined turnover increased marginally by 2% due to higher volumes. Profits declined due to lower operating profits.
Year under Review
- TSN Wires had fiRst sales to the renewable energy segment for ‘Premium Galvanised Finished Goods (Barbed wire, Chain link).
- Launched low emission steel products.
Recognitions
- SIW certified the Low Emission Support Scheme (LESS) project for its sustainability operations.
- Acquired a new Certificate of ISO/IEC 27001 for Information Security Management System.
- TSN Wires awarded for excellence in practices establishment on occupational safety and health from the Ministry of Labour.
7. Tata Steel Minerals Canada (TSMC)
TSMC is a partneRship between Tata Steel (82%) and the Government of Quebec (18%). TSMC mines and process high-grade iron ore from multiple isolated hematite deposits occurring over 30 km in the Menihek region of Labrador and northern Quebec, near Sche_erville, and containing from < 1 million to 50 million tonnes of high-grade ore. Fines for sintering and super_ne material from its beneficiation plant are produced with a minimum iron content of 64% Fe while the DSO (Direct Shipping Ore) facilities crush, screen and dry 60%-62% Fe iron ore for direct shipping. The product is railed to Sept-?les (a city in Canada) for shipping to the customers worldwide.
In FY2024-25, the iron ore market experienced notable fluctuations, with indices dropping from a peak of U$ 120.70 per ton in May 2024 to a low of U$ 89.35 per ton by September 2024. This decline was largely attributed to a decrease in global steel demand, particularly within Chinas housing and construction sectoRs, leading to intermittent oveRsupply scenario in iron ore. With the Government of China interjecting multiple stimulus during the year and resumption of construction activity, CFR prices recovered in the later part of the year to stay over U$ 100/ton.
Global shipping costs surged during the year, due to disruptions in key maritime routes, including the Red Sea, Panama Canal, and Suez Canal. These disruptions, combined with rising operational expenses, contributed to the increased shipping costs experienced by many industries. These costs began to subside during the later part of the year owing to seasonality.
The turnover and profit/(loss) figures for the Financial Year 2024-25 are as follows:
| FY25 | FY24 | |
| Turnover | 1,422 | 1,330 |
| Profit before tax (PBT) | (1,457) | (771) |
| Profit after tax (PAT) | (1,457) | (771) |
In FY2024-25, the business was able to produce ~3 MT of iron ore fines (higher by ~35%) and complete total shipment of ~2.4 MT. TSMC achieved 100% compliance with % of Fe and % of Silica in its products resulting in zero quality penalties.
During the FY 2024-25, the turnover increased by H 92 crore (7%) over previous year owing to higher volumes partly offset by decrease in prices by ~12%. The Company during the FY 2024-25 reported a higher loss before tax amounting to Rs.1,457 crore as against loss of Rs.771 crore in previous year primarily on account of lower operating profits due to lower prices and inventory provisions, along with higher finance cost during the year.
Recognitions
In FY2024-25, TSMC received the Tata North America Sustainability Award for sustainable development through environmental conservation, carbon reduction, and water management efforts, involving local Indigenous communities, while also exploring technological and natural offsets in northern Labradors challenging climate.
Consolidated Performance
The consolidated profit after tax of the Company was Rs.3,174 crore as against a loss of Rs.4,910 crore in the previous year. In FY2023-34 exceptional charge of Rs.7,814 crore mainly for onetime non-cash impairment and restructuring provision was recognised in respect of business restructuring at TSUK. The increase in profit was also due to higher operating profits due to decrease in EBITDA loss at the operations in the Netherlands and improvement in operating profits at NINL during the year. Tax charge was higher by Rs.1,477 crore in line with higher profitability. The basic and diluted earnings for the Financial Year 2024-25 were at Rs.2.74 per share each (previous year: basic and diluted: Loss of Rs.3.62 per share each).
The analysis of major items of the financial statements is given below.
a) Revenue from operations
| FY25 | FY24 | Change (%) | |
| Tata Steel (Standalone) | 1,32,517 | 1,40,933 | (6) |
| TSE | 76,416 | 78,144 | (2) |
| NINL | 5,701 | 5,505 | 4 |
| South East Asia | 7,761 | 7,495 | 4 |
| Others | 57,347 | 68,410 | (16) |
| Eliminations & Adjustments | (61,199) | (71,316) | 14 |
| Total revenue from operations | 2,18,543 | 2,29,171 | (5) |
The consolidated revenue from operations was lower by 5% as compared to the previous year on account of decrease in steel realisations across geographies, partly offset by increase in deliveries mainly at the Indian and Netherlands operations. Revenue declined at Tata Steel (Standalone), primarily due to significant decrease in realisations in domestic as well as export markets attributable to cheap Chinese imports, partly offset by higher steel deliveries by 1.03 MT owing to higher production.
Revenue declined at Europe attributable to reduction in average revenue per tonne due to subdued demand dynamics partly offset by marginal increase in deliveries post reline of Blast Furnace 6 in the Netherlands. Increase at NINL was due to higher production post ramp up during the year which was majorly eliminated on consolidation. Others primarily include decrease in revenue at TS Global Procurement which is majorly eliminated on consolidation.
b) Purchases of stock-in-trade
| FY25 | FY24 | Change (%) | |
| Tata Steel (Standalone) | 9,825 | 9,700 | 1 |
| TSE | 9,451 | 5,518 | 71 |
| NINL | 0 | 0 | N.A. |
| South East Asia | 4,276 | 3,724 | 15 |
| Others | 6,497 | 7,320 | (11) |
| Eliminations & Adjustments | (12,031) | (11,289) | (7) |
| Total purchases of stock-in-trade | 18,018 | 14,973 | 20 |
Expense was higher significantly at European operations due to increase in external steel purchases post shutdown of Blast Furnaces in the UK for transition. Increase in billet production at Tata Steel Thailand led to higher purchases of scrap during the year. Tata Steel (Standalone) expenses increased marginally attributable to increase in purchases of traded rebaRs from NINL and Thailand (which was majorly eliminated on consolidation), partly offset by lower purchases of scrap.
c) Cost of materials consumed
| FY25 | FY24 | Change (%) | |
| Tata Steel (Standalone) | 44,089 | 48,516 | (9) |
| TSE | 29,436 | 30,200 | (3) |
| NINL | 2,752 | 3,106 | (11) |
| South East Asia | 1,421 | 1,525 | (7) |
| Others | 45,616 | 56,578 | (19) |
| Eliminations & Adjustments | (46,234) | (57,391) | 19 |
| Total cost of materials consumed | 77,080 | 82,534 | (7) |
Consumption declined across all major entities mainly due to lower cost of imported coal & other raw materials owing to lower prices. TSE reported decrease in GBP terms primarily due to lower consumption owing to lower production as a result of closure of heavy end facilities at UK along with decrease in coking coal prices, partly offset by higher consumption of iron ore at the Netherlands due to increase in steel production post the reline of Blast Furnace 6 at the Netherlands in the previous year. Decrease at Tata Steel (Standalone) was mainly due to decrease in prices of coking coal and lower quantities due to use of own coal, partly offset by higher use of purchased coke at Kalinganagar post commencement of production at BF#2. Decrease at NINL was due to lower coking coal prices partly offset by higher use due to increased production during the year.
Others primarily reflects decrease in transactions at T S Global Procurement due to decrease in coal prices, which are majorly eliminated on consolidation.
d) Employee benefits expense
| FY25 | FY24 | Change (%) | |
| Tata Steel (Standalone) | 8,010 | 7,473 | 7 |
| TSE | 15,238 | 15,576 | (2) |
| NINL | 231 | 225 | 3 |
| South East Asia | 293 | 325 | (10) |
| Others | 1,012 | 842 | 20 |
| Eliminations & Adjustments | 105 | 69 | 53 |
| Total employee benefits expense | 24,889 | 24,510 | 2 |
Increase in expenses was mainly at Tata Steel (Standalone) primarily due to salary revisions and its consequential impact on retirement provisions along with increase in staff welfare expenses.
Decrease in expenses at Europe was mainly due to reduction in employees count post heavy end restructuring at the UK along with decrease in other long-term employee benefits due to actuarial adjustment and lower provisions at the Netherlands, partly offset by salary revisions due to inflation and adverse exchange rate movement. Increase at NINL was attributable to salary revisions and increase in leave salaries due to change in actuarial estimates. Decrease in South-east Asia was due to lower variable pay provisions.
e) Depreciation and amortisation expense
| FY25 | FY24 | Change (%) | |
| Tata Steel (Standalone) | 6,253 | 6,009 | 4 |
| TSE | 3,074 | 2,818 | 9 |
| NINL | 493 | 496 | (1) |
| South East Asia | 93 | 97 | (5) |
| Others | 545 | 497 | 10 |
| Eliminations & Adjustments | (37) | (35) | (5) |
| Total depreciation and amortisation expense | 10,421 | 9,882 | 5 |
Expense was higher than the previous year mainly on account of increase in depreciation charge at Tata Steel (Standalone) due to capitalisation of major facilities for Tata Steel Kalinganagar phase-II expansion. Increase at Europe mainly at Netherlands was due to higher charge post BF6 reline, partly offset by decrease at UK operations post shut down of Blast Furnaces, along with adverse exchange rate movement. Increase at Others is mainly at Tata Steel Minerals Canada due to higher charge attributable to increase in production quantities.
f) Other expenses
| FY25 | FY24 | Change (%) | |
| Tata Steel (Standalone) | 42,396 | 44,875 | (6) |
| TSE | 26,410 | 30,852 | (14) |
| NINL | 1,583 | 1,854 | (15) |
| South East Asia | 1,743 | 1,647 | 6 |
| Others | 4,688 | 3,379 | 39 |
| Eliminations & Adjustments | (3,465) | (2,167) | 60 |
| Total other expenses | 73,354 | 80,440 | (9) |
Other expenditure represents the following expenditure:
| FY25 | FY24 | Change (%) | |
| Consumption of stores and spares | 10,979 | 12,200 | (10) |
| RepaiRs and maintenance | 10,717 | 12,781 | (16) |
| Relining expenses | 304 | 329 | (8) |
| Power, fuel and industrial gases | 13,125 | 16,613 | (21) |
| ConveRsion charges | 3,054 | 2,854 | 7 |
| Freight and handling charges | 13,646 | 11,952 | 14 |
| Rent and hire charges | 3,462 | 3,929 | (12) |
| Mining premium and Royalties | 5,340 | 6,764 | (21) |
| Rates and taxes | 2,288 | 2,740 | (16) |
| Insurance charges | 681 | 712 | (4) |
| Commission and discounts | 366 | 309 | 18 |
| Allowance for credit losses/ provision for advances | 9 | 115 | (92) |
| Others | 10,728 | 11,057 | (3) |
| Less:- Expenditure (other than interest) transferred to capital & other accounts | (1,345) | (1,915) | (30) |
| Total Other expenses | 73,354 | 80,440 | (9) |
Expenses decreased at Tata Steel (Standalone) primarily due to decrease in Royalty charges mainly due to lower production of Chrome ore along with lower additional royalty on iron ore sold during the year. Decrease in rates and taxes on account of reveRsal of old liability for water charges and decrease in other expenses mainly due to write back of old liabilities no longer required. Decrease is partly offset by, increase in freight and handling charges during the year primarily due to increase in deliveries and lower foreign exchange revaluation gain on inter-company loans/receivables.
Expenses at TSE were lower primarily due to lower stores and maintenance cost at UK post shut down of Blast Furnaces during the year along with lower maintenance costs at Netherlands due to BF6 reline in the previous year. Further, costs of bulk gases was lower primarily due to decrease in prices and lower consumption at UK, which emission due to increase in production at the Netherlands and adverse exchange rate movement on conveRsion.
Expenses decreased at NINL mainly due to lower consumption of stores and lower repaiRs and maintenance charges attributable to ramp up of production during the year.
Increase at SEA mainly due to increase in freight and handling charges due to higher exports along with increase in other expenses.
Increase in Others was mainly at Tata Steel Minerals Canada Ltd. due to higher production and deliveries along with adverse exchange movements at T S Global Holdings Pte. Ltd.
g) Finance costs
| FY25 | FY24 | Change (%) | |
| Tata Steel (Standalone) | 4,238 | 4,101 | 3 |
| TSE | 2,639 | 2,343 | 13 |
| NINL | 630 | 567 | 11 |
| South East Asia | 16 | 15 | 3 |
| Others | 3,592 | 5,619 | (36) |
| Eliminations & Adjustments | (3,774) | (5,137) | (27) |
| Finance costs | 7,341 | 7,508 | (2) |
h) Net Finance costs
| FY25 | FY24 | Change (%) | |
| Tata Steel (Standalone) | 2,343 | 2,165 | 8 |
| TSE | 2,585 | 2,169 | 19 |
| NINL | 587 | 537 | 9 |
| South East Asia | 2 | 2 | 24 |
| Others | 800 | 1,910 | (58) |
| Eliminations & Adjustments | (13) | 11 | (221) |
| Net Finance costs | 6,304 | 6,794 | (7) |
Finance cost decreased marginally by 2% primarily at other Foreign Subsidiaries due to repayments of external borrowings during the year at ABJA Investment Co. Pte. Ltd. and at TS Global Procurement Co. Pte. Ltd. These were partly offset by increase in interest cost at Tata Steel (Standalone) due to utilisation of various term loans and debentures during the year majorly for funding capital expansion projects and investments, along with net borrowings of short-term loans during the year. Marginal increase at Tata Steel Europe was mainly on account of marginal increase in borrowings and adverse exchange rate movement during the year.
Increase at NINL was due to higher charge on capitalised interest on Non-Convertible Redeemable Preference Shares, eliminated on consolidation.
Net finance charge was lower in line with decrease in finance cost along with interest on income tax refund received for earlier years during the year.
i) Exceptional items
| FY25 | FY24 | Change (%) | |
| Tata Steel (Standalone) | (902) | (3,488) | N.A. |
| TSE | (73) | (6,707) | N.A. |
| NINL | (1) | (31) | N.A. |
| South East Asia | 63 | 52 | N.A. |
| Others | (20) | 0 | N.A. |
| Eliminations & Adjustments | 79 | 2,360 | N.A. |
| Total exceptional items | (855) | (7,814) | N.A. |
Exceptional items during the FY2024-25 primarily represents:
- Provision for impairment of non-current assets Rs.119 crore, which primarily includes impairment of Property, plant and equipment, intangibles (including capital work-in-progress) at Tata Steel Europe (‘TSE).
- Net Provision for Employee Separation Scheme (‘ESS) amounting to Rs.692 crore under Sunehere Bhavishya Ki Yojana (‘SBKY) and other scheme at Tata Steel Limited (Standalone), Tata Steel Downstream Products Limited and at Neelachal Ispat Nigam Limited (‘NINL).
- Contribution to Electoral Trust of Rs.173 crore at Tata Steel Standalone.
- Loss on sale of non-current investments at TSE amounting to Rs.7 crore.
Partly offset by,
- Gain on sale of non-current assets at Tata Steel (Thailand) Public Company Limited (‘TSTH) amounting to Rs.62 crore on sale of land.
- Fair valuation gain on non-current investments amounting to Rs.17 crore at Tata Steel (Standalone).
- Credit of Rs.58 crore under restructuring and other provisions mainly at TSE due to reveRsal of provision in respect of heavy-end restructuring.
The exceptional items in Financial Year 2023-24 primarily represents:
- Provision for impairment of non-current assets Rs.3,516 crore, which primarily includes impairment of Property, plant and equipment, intangibles (including capital work-in-progress) at TSE due to heavy end restructuring along with impairment for Sukinda mines and impairment of port project in India.
- Net Provision for ESS amounting to Rs.130 crore under SBKY and other scheme at Tata Steel (Standalone) and at NINL.
- Charge of Rs.4,263 crore under restructuring and other provisions mainly at TSE and at Tata Steel (Standalone) for Sukinda mines.
Partly offset by,
- Gain on sale of non-current investments in an associate at TSE amounting to Rs.5 crore.
- Gain on sale of non-current assets at TSTH amounting to Rs.52 crore on disposal of Mini Blast Furnace asset.
- Impairment reveRsal Rs.20 crore at TSE on deferred consideration of Speciality Business.
- Fair valuation gain on non-current investments amounting to Rs.18 crore at Tata Steel Limited (Standalone).
j) Property, plant and equipment (PPE) including intangibles and right of use assets
| FY25 | FY24 | Change (%) | |
| Tata Steel (Standalone) | 1,34,339 | 1,26,501 | 6 |
| TSE | 32,648 | 31,244 | 4 |
| NINL | 11,105 | 11,366 | (2) |
| South East Asia | 1,022 | 964 | 6 |
| Others | 8,320 | 8,243 | 1 |
| Eliminations & Adjustments | (843) | (868) | 3 |
| Total PPE inlcuding intangibles & right of use assets | 1,86,591 | 1,77,450 | 5 |
PPE including intangibles and right of use assets increased by 5% primarily at Tata Steel India on account of increase in capital work-in-progress mainly at Kalinganagar Phase-II along with normal additions at Kalinganagar plant during the year, which was offset by depreciation and amortisation charge during the year. TSE increased by 4%, primarily on account of movement in foreign exchange rates.
k) Inventories
| FY25 | FY24 | Change (%) | |
| Finished and semi-finished goods including stock in Trade | 17,679 | 16,830 | 5 |
| Work-in-progress | 5,436 | 5,692 | (5) |
| Raw materials | 14,662 | 19,703 | (26) |
| Stores and spares | 6,813 | 6,933 | (2) |
| Total Inventories | 44,590 | 49,158 | (9) |
| Tata Steel (Standalone) | 22,934 | 24,656 | (7) |
| TSE | 18,132 | 20,696 | (12) |
| NINL | 881 | 1,151 | (23) |
| South East Asia | 1,106 | 920 | 20 |
| Others | 1,673 | 1,912 | (12) |
| Eliminations & Adjustments | (136) | (177) | 23 |
| Inventories | 44,590 | 49,158 | (9) |
Decreased by 9% primarily at Europe mainly at Ijmuiden due to a structured drive to reduce working capital - which includes significant reduction in inventory holding days and lower rates of both raw material and finished goods. Reduction in the UK is mainly in raw materials post shut down of blast furnaces during the year. Inventories decreased at Tata Steel (Standalone) mainly on account of decrease in cost of finished and semi-finished goods along with lower stock quantities. Further there was decrease in raw material inventories primarily due to lower prices of imported coking coal during the year and lower quantity of chrome ore over previous year. Increase in SEA was primarily due to higher stock quantities of billets and scrap on account of planned shutdown subsequently.
Decrease at NINL was primarily on account of lower cost of finished and semi-finished goods along with lower rates of coal and coke inventory.
l) Trade receivables
| FY25 | FY24 | Change (%) | |
| Tata Steel (Standalone) | 1,566 | 1,596 | (2) |
| TSE | 2,923 | 3,895 | (25) |
| NINL | 88 | 102 | (13) |
| South East Asia | 1,118 | 833 | 34 |
| Others | 6,769 | 9,138 | (26) |
| Eliminations & Adjustments | (7,204) | (9,300) | 23 |
| Net trade receivables | 5,260 | 6,264 | (16) |
Decrease was primarily at the European operations due to increased securitisation of receivables through a structured programme along with decrease in steel prices. Increased at SEA mainly due to higher export sales receivables during the year. Decrease in Others was primarily at TS Global Procurement Co. Pte. Ltd. majorly eliminated on consolidation.
m) Gross debt and Net debt
| FY25 | FY24 | Change (%) | |
| Gross debt | 94,801 | 87,082 | 9 |
| Less: Cash and Bank balances (incl. Non-current balances) | 11,779 | 8,801 | 34 |
| Less: Current investments | 443 | 731 | (39) |
| Net debt | 82,579 | 77,550 | 6 |
Net debt was higher by Rs.5,029 crore over previous year. Gross Debt at Rs.94,801 crore was higher by Rs.7,719 crore as compared to the previous year. Increase in Gross Debt was mainly due to net borrowings of Rs.5,325 crore mainly in Term loans primarily at Tata Steel Standalone for funding capital expansion projects and investments in subsidiaries. The increase was partly offset by decrease at ABJA Investment Co. Pte. Ltd. and T S Global Procurement Company Pte. Ltd. Moreover, borrowings further increased by adverse exchange rate movements on the borrowings.
The increase in Net Debt was in line with increase in gross debt partly offset by increase in cash and cash equivalents mainly at the Netherlands and at NINL due to better operational performance over previous year. Current investments declined mainly in India, partly offset by increase at NINL.
n) Cash Flows
| FY25 | FY24 | Change (%) | |
| Net Cash from/(used in) operating activities | 23,512 | 20,301 | 16 |
| Net Cash from/(used in) investing activities | (14,173) | (14,252) | 1 |
| Net Cash from/(used in) financing activities | (7,002) | (11,097) | 37 |
| Net increase/(decrease) in cash and cash equivalents | 2,337 | (5,048) | 146 |
Net cash flow from/(used in) operating activities
During the year under review, the net cash from operating activities was Rs.23,512 crore as compared to Rs.20,301 crore during the previous year. The cash inflow from operating profit before working capital changes and direct taxes during the current year was Rs.23,929 crore as against Rs.22,237 crore during the previous year reflecting increase in operating profits during the current year. Cash inflow from working capital changes during the current period was Rs.2,207 crore primarily due to decrease in inventory by Rs.4,776 crore, decrease in current/non-current financial assets by Rs.1,137 crore, partly offset by, decrease in Non-current/current financial and other liabilities/provisions by Rs.3,706 crore. The payments of income taxes during the year under review were Rs.2,624 crore (net of income tax refund for earlier years) as compared to Rs.5,320 crore during the previous year mainly at Tata Steel (Standalone).
Net cash flow from/(used in) investing activities
During the year under review, the net cash outflow from investing activities was Rs.14,173 crore as against an outflow of Rs.14,252 crore during the previous year. The outflow during the year broadly represents capex of Rs.15,671 crore primarily at India and at Europe which were offset by sale (net of purchase) of current investments amounting to Rs.531 crore. Inflow was on account of interest and dividend receipt Rs.536 crore and advance received on sale of asset Rs.750 crore.
Net cash flow from/(used in) financing activities
During the year under review, net cash outflow from financing activities amounted to Rs.7,002 crore as against outflow of Rs.11,097 crore during the previous year. The net outflow primarily represents payment of dividend of Rs.4,490 crore and interest payment of Rs.8,119 crore, partly offset by proceeds from borrowings (net of repayments including finance lease) of Rs.5,325 crore.
o) Changes in Key Financial Ratios
The change in the key financial ratios as compared to
| FY25 | FY24 | Change (%) | |
| Inventory Turnover (days) | 80 | 84 | (5) |
| DebtoRs Turnover (days) | 10 | 12 | (17) |
| Current Ratio (Times) | 0.90 | 0.87 | 4 |
| Interest Coverage Ratio1 (Times) | 3.12 | 2.47 | 26 |
| Debt Equity (Times) | 1.07 | 0.88 | 22 |
| Net Debt Equity (Times) | 0.90 | 0.78 | 15 |
| EBITDA Margin (%) | 11.81 | 10.21 | 16 |
| Net Profit Margin 2(%) | 1.45 | (2.14) | 168 |
| Return on average Equity (%) | 3.45 | (4.97) | 169 |
1) Interest Coverage Ratio:
Increased primarily on account of increase in operating profits along with lower finance cost.
2) Net Profit Margin and Return on average equity:
Increased primarily on account of profit during the year as compared to a loss in the previous year mainly attributable to higher operating profits and lower exceptional charge for restructuring and lower net finance charge as compared to the previous year.
VII. Corporate Finance
Central Banks and Monetary Policy:
Global financial conditions were broadly accommodative although the approach to interest rate trajectories diverged between key regions. In the US, inflation has moved below 3% in 2024 and is expected to further moderate in 2025. US Federal reserve aims to achieve 2% inflation over time and during 2024, the Federal Reserve reduced the benchmark rates by 100 bps to 4.25%. The Federal Open Market Committee (FOMC) is expected to cut rates by only 50 bps in 2025 Tari_s on trading partneRs and reciprocal measures, have the potential to raise inflation and employment levels remain stable. Much like the US, European Central Bank also cut its key interest rates by 125 bps. However, unlike the US, ECBs focus moved from combating inflation to aiding economic activity given soft consumption data and weak economic activity especially in Germany. ECB, in 2025, has to contend with a fragile recovery and an environment of inflation volatility amidst US tariffs and fiscal dynamics. On the other hand, Bank of Japan raised interest rates in 2024 for the fiRst time in 17 years, leading to significant market volatility and the unwind of the Yen carry trade. China faces defiationary pressures that have pushed bond yields to record lows. Most of the provinces have lowered inflation target from 3% to 2% for 2025 while government is spending in an effort to stimulate demand. Chinas offcials indicated that a ‘moderately loose monetary policy would be adopted for the fiRst time in 14 years. In India, the Reserve Bank of India (RBI) made a Repo rate-cut in February from 6.50% to 6.25%, the fiRst such move in five years and further reduced it to 6.00% in April 2025. Looking ahead, normal monsoon is expected to soften food inflation during the year while the policy focus is expected to aid investment and thereby, economic activity.
Balance Sheet Management:
Tata Steel allocates capital among investments for capacity growth in India, sustenance and essential capex including towards decarbonisation in Europe, return to shareholders in the form of dividend, and deleveraging. The strategic allocation is dynamically calibrated to the operating environment given the cyclical nature of the market environment in which we operate. There have been years in the past where we have deleveraged the balance sheet by more than $1 billion in a year. As of March 2025, Net debt stands at Rs.82,579 crore. In terms of the debt movement, this financial year has been a tale of two halves. Net debt increased during the fiRst half of the financial year driven by increase in working capital especially at UK. UK operations were amidst a transition from BF – BOF based steelmaking to downstream processing of purchased substrate and as such, witnessed an increase in their inventory levels. Moving to the second half of the financial year, net debt has decreased from Rs.88,817 crore in September 2024 by Rs.6,238 crore despite steel price to raw material spreads being at multi-year lows. Cost improvement initiatives across the geographies and release of working capital aided cashflows. While Net debt to EBITDA stands at 3.2x, with the progress of the 5 MTPA expansion at Kalinganagar along with 2.2 MTPA CRM complex, we expect improvement in credit metrices aided by increase in cashflow generation. During FY2024-25, we undertook proactive refinancing at competitive rates and repaid high cost debt to reduce interest costs. In FY2023-24, we had successfully amalgamated five companies and in FY2024-25, further three companies – namely Bhubaneshwar Power Private Limited, Angul Energy Limited and The Indian Steel & Wire Products Limited have been successfully amalgamated. The amalgamation is value accretive and expected to drive synergies across India operations.
Credit Ratings:
Partway through the year, international rating agency S&P Global Ratings upgraded Tata Steel Limiteds corporate family rating from ‘BBB- to ‘BBB, making Tata Steel the only Indian steel company whose credit rating is higher than the sovereign credit rating. Moodys reafirmed Tata Steels credit rating at ‘Baa3 with stable outlook, and Tata Steel is also the only steel company in India to be rated Investment grade by both the international credit rating agencies. Moving to domestic credit rating agencies, CARE Ratings reafirmed Tata Steels long-term credit rating of AA+ while India Ratings upgraded Tata Steels long-term credit rating from ‘AA+ to ‘AAA. With this ratings upgrade by India Ratings, Tata Steel becomes the only Indian steel company whose domestic debt instruments are rated as ‘AAA.
VIII. Risks and Concerns
Tata Steel operates in a dynamic global environment characterised by evolving regulatory and environmental requirements, heightened geopolitical uncertainty, and rapid technological advancements. These factors pose material risks across the organisations value chain. Tata Steel maintains a robust Enterprise Risk Management (ERM) framework to holistically assess and manage these exposures, supporting informed decision-making. A robust governance structure has been developed across the organisation, in its journey towards Risk Intelligence, with a Risk Management Committee at the Board level and an Apex Risk Committee (ARC) at senior management level, driving the ERM process across the Tata Steel Group.
Information regarding Key Risks facing Tata Steel and their mitigation strategies are given below:
Financial Risk
Tata Steels strategic objective is to scale its capacity in India sustainably, capitalising on Indias growth trajectory. Tata Steel UK is undergoing transition in 2025 to economically and environmentally viable operations through Electric Arc Furnace (EAF) and TSN is also planning to undergo decarbonisation in the coming years by implementing its green steel production plan. The transition involves substantial upfront costs and potential decommissioning expenses.
As of March 31, 2025, Tata Steel had a net debt of Rs.82,579 crore. The Company plans to manage its debt levels and fund its growth through internal accruals and external capital raising from banks and capital markets.
However, the cost of borrowings remains sensitive to global financial market dynamics and prevailing interest rate environments and Environmental, Social and Governance (ESG) factors.
Fluctuations in commodity markets due to tari_ and trade uncertainties, exacerbated by geopolitical instability, present volatility in raw material prices, impacting metal costs and working capital needs. Currency exchange rate volatility also significantly influences the cost of capital and overall financial performance.
Mitigation Strategies
Tata Steels mitigation strategies centres on robust cash flow generation and working capital optimisation. Continuous improvement programmes and portfolio restructuring are implemented across geographies to enhance operational efficiency. Tata Steel priortises projects with high return on invested capital and short payback periods. The Company is actively diveRsifying its funding sources, including exploring government grants for green initiatives, accessing diveRse capital pools, and puRsuing longer-term debt with flexible terms.
To address ESG-related financial risks, the Company is committed to collaborating with international partneRs and bodies like the Task Force on Climate-Related Financial Disclosures (TCFD) to enhance ESG disclosures, meet evolving standards, and establish a robust and sustainable financing framework. The Company actively engages with investoRs on the ongoing and planned initiatives to green its operations.
Tata Steel has also implemented the concept of ‘One Treasury, which efficiently manages the treasury operations for the entire Tata Steel Group including its subsidiaries. This comprehensive approach, combined with skillful management of cashflows, currencies and commodity hedging deliver better financial stability in a dynamic market environment.
Macroeconomic and Market Risk
In FY2024-25, the global economy faced peRsistent challenges, including sluggish activity in key regions, elections in over 60 major countries, ongoing geopolitical tensions, and the rising threat of tari_ conflicts. The steel industry was particularly impacted, with Chinas weakened property sector driving increased steel exports globally. This surplus supply placed downward pressure on prices.
In India, demand remained strong, achieving double-digit growth for the fourth consecutive year. However, new production facilities and competitively priced imports created significant pricing pressures. Meanwhile, the UK and Netherlands businesses faced pressure from sluggish steel demand, increased climate compliance expenses, and competition from imports and alternative materials.
Mitigation Strategies
To address these issues, the Company has predominantly focused on domestic market in India by enhancing its offerings and play in automotive, branded and value accretive industrial products.
- Automotive LeadeRship:
Tata Steel has maintained its leadeRship position in Automotive sector by prioritising high-end products and expanding its presence in new model launches. The Company has commissioned a new Continuous Annealing Line at Kalinganagar in Odisha to further strengthen its presence in Automotive Segment through value added products.
- Construction Solutions:
Tata Steel expanded its capacity for ready-to-use reinforcement solutions through a digitally integrated network of 31 service centres, achieving an approximately 33% Y-o-Y growth. The introduction of Plate Fabricated Sections (PFS) for offsite quality fabrication further strengthens Tata Steels offerings in construction segment.
- Growth in Engineering Segment:
Tata Steel has recorded ~20%, Y-o-Y growth driven by Railways, Yellow Goods and Pre-Engineered Buildings. Tata Steel has also become the fiRst Indian steel company to have end-to-end product capability for hydrogen transportation, through its Electric Resistance Welded (ERW) pipes offerings.
- Increase in Branded sales:
Tata Tiscon, Tata Steels flagship B2C brand for rebar, has achieved an impressive Y-o-Y growth of approximately 19%. Meanwhile, Tata Steelium, representing the cold-rolled steel sheets and coil for SME (small and medium-sized enterprise) segment, recorded a growth of 8%. These developments contributed to an overall growth of 7% for branded products.
- Localisation Strategy:
To combat imports, Tata Steel continued its focus on localisation. It has received approval for hot-rolled hi-tensile grade CP780 and started supply of Poly Steel.
- Culture of Continuous Improvement:
The Company continues to focus on driving improvement projects such as ‘Shikhar initiatives across the businesses for enhanced play in value added segments and optimising the cost-to-serve.
Tata Steel Netherlands is implementing strategies to enhance its competitive position in EU-focused markets by driving sales of innovative, high-value products while reducing exposure to commoditised, import-heavy segments. It is optimising its portfolio by aligning long-term contracts with product and market mixes and defending against unfair imports through policy advocacy on energy and carbon levies and engaging stakeholdeRs on the Carbon Border Adjustment Mechanism (CBAM).
Additionally, TSN and TSUK are prioritising green steel offerings and view CBAM favourably for ensuring a fair-trade environment by restricting low-cost imports. Indias safeguard duty (effective April 2025) and adjustments to EU safeguard quotas are expected to benefit steel prices in the region.
Regulatory Risk
The global metals and mining industry faces a dynamic regulatory environment, driven by changing laws, trade patterns, and environmental policies. These developments shape business strategies and market footprint, aiming to safeguard operations while generating value.
TSN and TSUK navigate diveRse regulations, particularly focusing on the CBAM and evolving energy and byproduct laws in the Netherlands.
Globally, rising protectionism has led to increased tariffs and anti-dumping measures. TSN maintains a significant U.S. market presence, where Section 232 tariffs remain alongside additional duties imposed on steel and automotive products.
Mitigation Strategies
Tata Steel operates in a constantly evolving regulatory environment and remains vigilant in monitoring legal and policy developments that could influence its business and future growth. The Company adopts a proactive approach for assessing regulatory changes and maintaining a zero-tolerance policy on non-compliance. Comprehensive compliance management systems are in place to ensure all employees undeRstand and adhere to applicable regulations. The Company also actively promotes responsible environmental stewardship. Recognising the importance of policy advocacy, Tata Steel identifies critical issues and collaborates with policymakeRs and industry stakeholdeRs to support fair trade, improve business conditions, and encourage the adoption of best practices. Recently, the Ministry of Finance notified preliminary findings on a 12% safeguard duty for certain imports priced below specified CIF (Cost, Insurance Freight) values, applicable for 200 days (e_ective from April 21, 2025), aimed at protecting domestic industry.
The Company continues to invest in technology, Research & Development, and digital tools to enhance its capacity for monitoring and responding to regulatory developments. These initiatives support Tata Steels broader decarbonisation ambition for 2045. Both TSN and TSUK are engaging with governments to develop practical, long-term plans for transitioning the steel sector to a competitive, decarbonised future. As part of this effort, the UK government has committed a Rs500 million grant for the Electric Arc Furnace (EAF) project in 2024.
TSN closely tracks import trends and collaborates with Eurofer (European Steel Association) to assess the need for additional trade defense actions against dumped steel imports. Meanwhile, uncertainties surrounding the implementation of the Carbon Border Adjustment Mechanism (CBAM) remain a key focus area. The Ministry of Steel regularly consults with industry playeRs and engages with the EU on operational challenges.
Commodity Risk
Coal and bulk commodities constitute approximately 61% of Tata Steels procurement expenditure. In FY2024-25, global demand for steel and metallurgical coal remained stable. Coking coal prices have generally remained rangebound but experienced a decline, hitting a four-year low in March 2025. This drop was attributed to several factors affecting global steel and metallurgical coal demand, including decreased import volumes by major consumeRs, a slowdown in steel production growth, and an increase in supply from countries like China and Indonesia. Additionally, trade tensions and sanctions involving the USA, China, Canada, Europe and Russia contributed to market volatility, impacting supply availability. While Chinese steel prices continued to ease, iron ore prices remained stable, offering minimal support from seasonal weather-related disruptions or restocking activities.
The Company faces external and internal risks such as:
- Seaborne metallurgical coal supply depends largely on Australia.
- Logistics & infrastructure challenges exist for exports from Indonesia & Mozambique.
- Extreme weather events in Australia, Canada and geopolitical events pose a risk to the supply chain reliability.
- High dependence on South Africa for DRI grade thermal coal poses risk in case of any force majeure.
- Announcement of auctions (linkage & spot) for NRS (non-regulated sector) and increasing dependency on road movement may impact inventory levels in case of sudden transport restrictions imposed by local administration.
- Process consumable prices for steelmaking have been range-bound, but Chinese market sentiment may affect price volatility.
- Changes in statutory and sustainability norms in import/export countries threaten supply chain reliability.
Mitigation Strategies
Steel prices correlate with raw material prices over the long-term. Changing coal and iron ore prices are reflected in steel prices which act as a natural hedge. At Tata Steel group, steps are taken to manage price volatility.
- Group wide smart hedging policy for key raw materials to control cost volatility. For UK and Netherlands, iron ore buy from external market, hedging is done in financial markets to bring in price certainty as well as lock in the spread between the bought-out ore and confirmed steel orders.
- Price forecasting tools are used for commodities to undeRstand price movements and optimise costs.
- ReveRse auctions are used for efficient price discovery for commodities like coal, ferro alloys, refractories etc. Captive raw materials guard against volatility as they have relatively stable prices.
- DiveRsify coal sourcing from countries like Indonesia, USA, Mozambique, and Canada for critical grades to mitigate risks of over-dependence on geographies and supplieRs.
- Securitise critical grades through long-term contracts with strategic metallurgical coal supplieRs.
- Trial of new coal grades and blend optimisation with increased usage of weaker/lower cost coals to mitigate price risk.
- Evaluate potential sources in other geographical locations such as Odisha and Chhattisgarh to ensure supply security of non-coking thermal coal.
- In India, contract with local rake supplieRs to increase the rail coe_cient for consistent domestic coal supplies.
- Maximise linkage volume through Fuel Supply Agreements to mitigate market volatility due to demand/supply gaps affecting spot auction premiums.
- Indigenisation continues to be a major focus area for de-risking the supply chain as well as supporting the local Micro, Small and Medium Enterprises (MSMEs) to develop their facilities both in terms of technology as well as quality. Import commodities like Refractories, Nitrovan, cored wire etc have been identified where major leveRs like alternate geography, strengthening the Original Equipment ManufactureRs (OEMs) Indian facilities through collaboration and alternate product development are being used to ensure safeguarding against geo-political escalations.
- Adoption of Sustainable procurement framework and engagement with supplieRs to reduce, recycle, and reuse.
Supply Chain Risk
Tata Steel has one of the largest and most complex supply chains in steel industry with more than 100 MT of Raw Materials sourced globally and ~55,000 Stock Keeping Units (SKUs) of Finished Goods moving to and from production units across locations, commissioning of the largest blast furnace at Kalinganagar in Odisha as part of Phase#2 expansion added another ~20MT material movement, further adding to the scale of operations. The Indian Steel Industry has grown at a CAGR of 6% in last five years with most of the capacity being planned in the East particularly Odisha adding to the existing infrastructural stress on railways and ports in this region. Additionally, there are intermittent disruptions in railways and ports due to accidents, regional strikes, cyclones etc. The Indian Railway Freight Policies are becoming cost adverse impacting the supply chain spend.
The Shipping industry is getting impacted due to ongoing geopolitical tensions, such as the Russia-Ukraine war and conflicts in Middle East & Red Sea crisis leading to rerouting of vessels, increasing transit times and increased insurance & operational costs. Geopolitical re-alignments such as US-China trade war and dispute on Panama Canal is reshaping sea trade routes, leading to increased administrative and operational complexities for the shipping industry. The statutory norms are also getting more stringent thus making it necessary to address the Environmental, Social and Governance (ESG) issues for Scope 3 operations also.
Mitigation Strategies
- Debottlenecking Port Infrastructure:
Tata Steel has long-term partneRship agreements with major ports. In addition, the Company has tested and established routes for imported raw materials with other ports as per requirement.
- Strengthening the Railway Infrastructure in India:
To improve reliability, the Company has been increasing investment in private freight train schemes- GPWIS (General Purpose Wagon Investment Scheme) and SFTO (Special Freight Train Operator). Around 25 additional private rakes have been added in Tata Steel circuit in FY2024-25.
- Cost optimisation:
There is a continued effort to bring down the cost to deliver through commercial leveRs, increase in owneRship of rakes and mode-network optimisation. Considering geopolitical tensions and tari_ war, portfolio management and bunker hedging have been leveraged to safeguard impact on the Shipping spend.
- Sustainability Initiatives:
Continuing to establish new benchmarks in maritime sustainability, Tata Steel in FY2024-25 became the fiRst Indian steel company to perform full laden leg on B24 biofuel for its raw material shipment from Australia to India. Overall, 39 biofuel vessels and 5 Lique_ed Natural Gas (LNG) vessels have been executed in FY2024-25 which is almost 18% of imported shipments. Tata Steels Shipping emissions measurement are aligned to the latest (International Maritime Organisation) IMO guidelines and calculated ‘well to wake basis. In road transportation, the Company has a fleet of vehicles based on alternate fuels (Compressed Natural Gas (CNG)/LNG/electric vehicles EV).
Operational Risk
The steel industry faces various external risks including supply chain disruptions from extreme weather, regulatory changes, and logistics constraints that impact operational efficiency. CybeRsecurity threats can harm digital infrastructure, while internal issues like equipment failures and maintenance delays, combined with aging assets, may lead to unplanned downtime and increased costs. Additionally, disruptions in utility services such as power, water, or gas can hinder manufacturing processes and reduce overall output.
Mitigation Strategies
The maintenance functions have been consolidated to bring synergy across locations in India. The Company has adopted real-time asset monitoring for both preventive and predictive maintenance, ensuring regular upkeep and the reliability of machinery. An Integrated Maintenance Excellence Centre (i-MEC) has been established to maintain the availability, reliability, and integrity of all critical assets, including safety. Additionally, a smart indenting system is being deployed to drive site-specific efficiencies, with accelerated vendor discovery through reveRse auctions and planned De-Prop and time-based maintenance as key value driveRs.
Standardising maintenance practices and utilising integrated asset digital analytics bolster predictive maintenance, enabling accurate asset health predictions via the Internet of Things (IoT) and Condition-Based Maintenance. The focus is on optimising costs through synergistic collaboration, which strengthens the vendor partner ecosystem and promotes seamless cross-locational synergy. Upgrades to key facilities at Jamshedpur are planned as part of efforts to replace aging equipment.
In the UK, Tata Steels transition plan to an Electric Arc Furnace (EAF) operation is underway, following the shutdown of two blast furnaces in 2024. Tata Steel UK is currently importing substrates from Tata Steel India and other supplieRs. Additionally, a Memorandum of Understanding (MoU) with JCB, a British construction equipment manufacturer, has been signed for low emission steel supply following the completion of the transformation plan. Structural improvement initiatives are also being undertaken at IJmuiden operations as part of the TSN improvement program, and the Corporate Asset Management Framework at TSN provides enhanced insights into asset reliability, failure risk and resource prioritisation.
To improve the structural integrity and safety of gas lines, the Company is utilising drone-based technologies for condition monitoring and thermography to detect potential blockages. The Power system is being restructured to ensure continuous power availability while optimising grid isolating protection settings.
Geopolitical situations and supply chain disruptions have heightened the uncertainty regarding the availability of spare parts, especially those dependent on limited geographic vendoRs. The Company thus emphasises on indigenisation of spares to achieve self-reliance and to digitise processes for optimised inventory management, aligning with the ‘Make-in-India initiative to encourage vendor partneRs to supply high-quality spares along with benchmark lead times.
Recognising the increasing unpredictability of weather patterns, including extreme heat and heavy rainfall, the Company has developed a comprehensive disaster response plan. This plan includes clear standard operating procedures to effectively address natural disasteRs, epidemics, pandemics and extreme weather events, ensuring the safety of the Tata Steel workforce and the continuity of business operations across geographies.
Safety Risk
The steel industry inherently involves hazards that can impact workforce health and safety. Risks arise from non-compliance with safety processes, regulations, or operational standards, threatening business continuity. Geographic expansion adds complexity with location-specific safety laws and requirements.
Mitigation Strategies
Safety remains central to Tata Steels operations, with a ‘Committed to Zero objective and a safety-fiRst mindset. The Company continues to strengthen Safety Management and Governance mechanisms, including those in newly merged units, focusing on risk understanding and workplace risk mitigation. The revised and standardised Health and Safety Policy ensures alignment across the Tata Steel Group.
Behavioural safety has improved through experiential learning and the dissemination of safety standards, enhancing risk perception. Business Continuity Management has been institutionalised through tactical emergency response centres, and Project Hazard Study IT systems integrate past learnings into new facilities. Over 100 Pre-Start-Up Safety Reviews (PSSR) audits were conducted for TSK Phase 2, alongside a Process Safety Management (PSM) maturity assessment. The Safety Excellence Reward framework now includes vendor partneRs alongside managerial positions.
Skill development remains a priority, with training sessions on ‘Risk Perception and Decision-making conducted at various sites. Continuous improvement initiatives have upgraded skill-certified workeRs from Silver to Gold and Platinum levels, ensuring competency and safety excellence.
In India, campaigns like 5 Safe Steps Forward, Road Safety Month, National Safety Week and National Fire Service Week promote safety awareness. Road safety practices extend beyond premises through technology interventions for vehicles, paperless processes and enhanced road pilot engagements. Campaigns such as Process Safety Alerts, Know Your PPE Series and Monsoon Safety Tips focus on hazard identification and risk control.
In the UK, the ‘Timeout for Safety campaign continued in FY2024-25, fostering engagement and receiving positive feedback. During FY2024-25, TSN launched its new safety programme ‘TrueSafe. With this programme, TSN is taking an extra step in addition to existing safety measures to continuously increasing safety awareness and performance.
Community Risk
Tata Steel has consistently prioritised community well-being, focusing on improving the quality of life for vulnerable groups near its operations. The Company aligns its resources to meet evolving community expectations, recognising that failure to do so could harm its reputation, societal impact, or business continuity. In the Netherlands, concerns over noise, dust, and emissions near manufacturing facilities have increased pressure to implement decarbonisation and social impact programmes. Addressing these issues is critical to avoiding stakeholder resentment, protests and potential disruptions to operations.
Mitigation Strategies
Tata Steel actively engages with communities, prioritising vulnerable groups to address societal developmental challenges. These provide a continuous and contemporary understanding of expectations and contexts.
The Company continues to build Tata Steel Foundation (TSF) in India as an institution with benchmark capability for implementing strategic social impact initiatives and fostering social capital with communities. It implements a range of change models which collectively (i) address development challenges that are national as well as community priorities, (ii) are designed with audacious theories of change, (iii) have demonstrated record of population level outcomes, (iv) are being replicated across India and can be instructive in the global context. TSF impacted over 5.77 million lives directly in FY2024-25, with some key outcomes being:
1. Rural and Urban Education Program: 23,111 out of school children brought back to education system in FY2024-25.
2. Public Health and Nutrition Program: 93% redressal rate in high-risk cases among pregnant women and children.
3. Initiative to boost Grassroots Sports: engaged 29,000+ children and youth in rural sports.
4. Promotion of Tribal Identity: 45,000+ people enrolled in tribal language classes across Odisha and Jharkhand.
5. Dignity for Disabled: Sabal initiative directly engages with Public Works Department (PwD) for livelihood and skill development programmes through various trainings, foundation courses, digital literacy and skill enhancement workshops. 13,000+ PwD connected through SABAL programmes.
6. Water Conservation: 147.17 million cubic feet water storage capacity created in FY2024-25.
7. Public Infrastructure: Enhancement of public infrastructure across locations. 500+ structures relevant for community have been completed.
8. Gender & Youth Empowerment: Enrolment of 25,000+ women in various leadeRship trainings.
Tata Steel UK continues working closely with the Transition Board, the UK & Welsh governments and national stakeholdeRs to ensure economic regeneration of South Wales. Tata Steel UKs Community PartneRship Program ‘Future Generations, via UKSE with sub-themes of education, environment, health, and well-being, works across the UK, assisting job and wealth creation by supporting small and medium businesses with finance and business premises.
Tata Steel Netherlands (TSN) advances its Roadmap+ decarbonisation plans, exceeding legal standards to mitigate emissions (e.g., nitrogen oxide, dust, heavy metals, noise). Such efforts depend on government support for the Green Steel Plan to enhance community health and well-being.
Cyber and Information Security Risk
The Companys operations significantly rely on IT and digital infrastructure, with several investments made on digital transformation for important and complex processes.
The rapid digitisation of its extensive value chain creates opportunities for growth but also introduces risks associated with advanced technologies like AI, Robotics Process Automation, and Machine Learning. Generative AI, for instance, is transforming customer interactions and driving business growth. These integrations increase the organisations exposure to cyber and privacy risks, non-compliance to industry laws and regulations, faulty and offensive data as well as performance instability. Organisational data needs to be protected for confidentiality, integrity, and availability in accordance with the data governance norms. Digital Personal Data Protection Act, 2023 has data privacy laws and regulations to govern the data privacy and protection requirements. Non-compliance to IT legislations and regulations may lead to imposition of penalties and adverse impact on Companys reputation. It is imperative that the organisations comply to privacy policy defined for the purpose.
While technology is kept as best as recent and supportable, obsolescence in technology needs to be addressed to eliminate any kind of cyber and business continuity risk.
Mitigation Strategies
Tata Steel has implemented advanced security measures such as strong access controls, Next Generation Firewall, Advanced Threat Protection, End Point Detection and Response to give real time detection capabilities based on behaviour, lateral movements.
Integrated Information Technology (IT) & Operational Technology (OT) Security Operation Centre has been implemented to give near real time visibility of security events generated on systems to identify abnormalities with immediate trigger to mitigation actions. 24*7*365 external attack surface management has been set up to identify potential risks over internet and try out exploits in attackeRs peRspective which helps to take immediate mitigation before being identified and utilised by attackeRs. Tracking of unusual behaviouRs and suspicious communication patterns through technology helps in real time threat detection. Advanced scanning tools and monitoring software further strengthens our vulnerability management through detection of security gaps in real time. Hidden threats are identified through enhanced security architecture and automated tools. Tata Steel security posture is further enhanced through uni_ed threat intelligence that automatically detects and highlights threats, provides expert recommendations, and helps prioritise the most dangerous risks.
The Company has implemented various policies and procedures to ensure data privacy. Pro-active software asset management is being carried out to ensure compliance.
Data governance has been implemented to ensure that data is well protected with required level of confidentiality, integrity and availability including retention of data as per regulations.
It is also ensured that the con_guration and consumption of Gen AI tech is done in a secure private environment to prevent risk emanating from AI adoption.
Continuous technology refresh is taken up to eliminate risk of technology obsolescence according to business priorities.
Tata Steel regularly assesses cybeRsecurity posture and conducts security audits to identify potential vulnerabilities. The same security initiatives are being extended to Tata Steel Group Companies (‘TSGCs) and has implemented Security information and Event management as core fundamentals of Security Operation Centre in various TSGCs. Zero Trust Architecture is also being implemented for TSGCs.
IX. Internal Control Systems and its Adequacy
The Company has established a robust Internal Financial Controls (IFC) framework that aligns with its operational size, scale, and complexity. The Board of Directors holds the responsibility for ensuring that the IFC is effectively implemented and maintained. This framework has been designed to provide reasonable assurance regarding the accuracy of financial and operational reporting, compliance with applicable laws, safeguarding of assets against unauthorised use, proper authorisation of transactions, and adherence to corporate policies. Furthermore, this internal control framework complies with the requirements set forth in the Companies Act, 2013.
Tata Steel has established Standard Operating Procedures (SOPs) and policies to guide its operations, with business leadeRs responsible for ensuring compliance. The Company employs continuous internal monitoring to identify risks promptly. Management has prioritised internal financial controls through IFC standardisation and rationalisation, streamlining control testing processes and enhancing automation. This approach has reduced manual efforts, increased assessment frequency, and improved data analysis. Additionally, Tata Steel upgraded its Governance, Risk, and Compliance (GRC) system to enhance control monitoring. As the Company further expanded the downstream value added products in FY2024-25, the control library has grown to address new business areas and risks from integrated group entities. To tackle these challenges, Management has reassessed internal financial controls and updated the risk control matrix, ensuring a robust control ecosystem that aligns with best practices. This effort provides assurance of operational efficiency and timely detection of control lapses as Tata Steel navigates its growth initiatives.
The Management, along with its statutory and internal auditors, has conducted thorough due diligence of the Companys control environment through comprehensive testing to ensure its effectiveness. The Company employs the SAP Governance, Risk, and Compliance (GRC) Module and other IT platforms to maintain a robust IFC framework, governed by an Information Management Policy. The internal financial controls have been documented and integrated into business processes, and evaluations conducted during the reporting period revealed no material weaknesses.
X. Statutory Compliance
The Company has in place adequate systems and processes to ensure that it is in compliance with all the applicable laws. The Company Secretary and Chief Legal Officer is responsible for implementing the systems and processes for monitoring compliance with the applicable laws and for ensuring that the systems and processes are operating effectively. The Chief Executive Officer and Managing Director, places before the Board, at each meeting, a certificate of compliance with the applicable laws. The Company Secretary and Chief Legal Officer also confirms compliance with Company law, SEBI Regulations and other corporate laws applicable to the Company.
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