The Indian multinational steel-making company, Tata Steel is aiming to double its steel production to about 40 million tonnes per annum (mtpa) in India by 2030. Tata Steel will continue to invest INR 10,000-13,000 crore a year to grow its downstream businesses of tubes and wires in India.

The firm intends to increase the production of flats to 27 mtpa (from 16 mtpa), longs to 5 mtpa (from 13 mtpa) and of tubes to 2 mtpa from (1 mtpa), wires to 1 mtpa (from 0.45 mtpa) and ductile iron pipes to 1 mtpa (0.2 mtpa). The company is also looking to grow its downstream businesses of tubes and wires in India. In an interaction, Mr. TV Narendran, CEO and Managing Director of Tata Steel stated that the company has the requisite sites and as they grow the upstream market, the company will also grow the downstream businesses such as tubes, wires and ductile iron pipes, among others.“Our current capex is in the range of Rs 10,000-13,000 crore a year, and going forward, we will continue to have that kind of a capex. Depending on projects, it would peak but at the same time we will keep an eye on debt levels. We are committed to keeping debt to Ebitda below 2, and we will generate enough cash flows to support us,” he added.

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The company recorded a net loss of INR 2,223.84 crore in Q3, and a net profit of INR 9,572.67 crore in Q3 of last fiscal year. Steel prices are currently at around INR 60,000 per tonne, and are expected to rise depending on various factors. “It will mirror what’s happening in the global markets. International prices went up by about $100, which is why Indian steel prices have also started going up. It also depends on coking coal prices, which have also risen by $340-350. So, if coking coal stays at $350, then steel prices will also rise,” he added.