Tata Steel announces future plans for expansion and sustainability at its 116th Annual General Meeting.
JAMSHEDPUR – Tata Steel Ltd. conducted its 116th Annual General Meeting (AGM) of shareholders for the Financial Year 2022-23 through a virtual platform today. During the meeting, Tata Steel Chairman Natarajan Chandrasekaran highlighted the company’s financial achievements and projected plans for future growth.
Simplification Journey and Expansion Plans
The company is on a journey to simplify its governance structure. Tata Steel is steadily expanding its business in India through both organic capital expansion and inorganic acquisitions. It remains steadfast in its goal to achieve an overall 40 MnTPA capacity in India by 2030.
Leadership Aspiration in Long Products Segment
Chandrasekaran stated that the company is aiming for a leadership position in the long products segment. In this regard, they have acquired Neelachal Ispat Nigam Limited (NINL). The augmentation of production at NINL to its rated capacity has positively impacted the overall capacity. Being part of the Kalinganagar ecosystem, NINL is well-positioned for synergistic future growth.
Investment in Circularity and Low-Carbon Steel Making
Tata Steel is investing significantly in circularity and low-carbon steel making. The company has signed a Memorandum of Understanding with the Government of Punjab to establish a state-of-the-art scrap utilising electric arc furnace based long products steel plant in Ludhiana. This plant, with a capacity of 0.75 MnTPA, is expected to be operational within two years.
A Commitment to Sustainability
The company has affirmed its commitment to sustainability by embedding sustainable business practices across its operations. It has set an ambitious target of achieving Net Zero emissions by 2045 as part of Project Aalingana. This initiative aims to reduce resource use and waste, and preserve and restore the natural environment by adopting a circular economy approach.
CSR Initiatives and Financial Performance
On the CSR front, the company spent Rs 481 crores in FY2022-23 and reached over 3.15 million lives. From a standalone performance perspective, Tata Steel India delivered revenues of ₹1,29,007 crore, with a Profit after Tax for FY2022-23 amounting to ₹15,495 crore.
In the UK, regarding the GBP 6 Billion British Steel Pension Scheme, the company has secured full insurance cover for the pension liabilities at no cash cost, eliminating future risks from asset-liability mismatches. For the Financial Year ended March 31, 2023, the Board of Directors has recommended a dividend of Rs 3.60 per equity share.
