Tata Steel acquires Thriveni Pellets Private Limited; Here’s how it will benefit its iron business

Synopsis: The company’s Board affirms the long-term strategy for growth in India with a strategic acquisition sized Rs. 636 crore on cash consideration, leading to optimization of operations.

The shares of this Tata group stock with a presence across the entire value chain of steel manufacturing, from mining and processing iron ore and coal to producing and distributing finished products in focus after its acquisition of TTPL.

With the market capitalization of Rs. 2,07,599.65 crore, Tata Steel Ltd’s share on Thursday made a day high of Rs. 166.60 per share, up by 2.7  percent from its previous day’s close price of Rs. 162.20 per share. The share has given a return of  167.62 percent over a period of five years.

Acquisition Update

Tata Steel Ltd have considered and approved the acquisition of 90,06,801 shares of face value Rs.10 each comprising 50.01% equity stake in TPPL from TEMPL, for an aggregate cash consideration of up to Rs. 636 crore, subject to closing adjustments. The transaction is subject to approval from Competition Commission of India and to be completed within a period of 3 to 4 months, subject to regulatory approval.

Thriveni Pellets Private Limited (‘TPPL’) is a private company incorporated under the Companies Act, 2013. It  holds 100 percent  stake in Brahmani River Pellets Limited (‘BRPL’), which operates a 4 MTPA pellet plant at Jajpur, Odisha along with a 212 Kilometer slurry pipeline. The 49.99 percent stake will continue to be held by Lloyds Metals & Energy Limited and 50.01 percent of TEMPL will be sold to Tata Steel.

TPPL belongs to the manufacturing and trading of Iron Ore Pellets, with turnover of Rs. 2,479.34 crore in FY 24-25, Loss of Rs. 45.14 crore in FY 24-25 and net worth of Rs. 1,472.80 crore. The acquisition aims to secure a pellet making facility for supply of iron ore pellets to Tata Steel in India.  

Tata steel’s Strategic Growth and Expansion Plans in India

The Board affirmed its long-term strategy for growth, prioritizing investments in: volume growth, value-added downstream portfolio, mining assets and infrastructure, and new low-carbon process technologies. including NNL expansion, Meramandali Facilities, Tarapur Facility, recent MoU and Hisarna Tech update.

Tata Steel is making a strategic move to secure its raw material supply by acquiring a 50.01% majority stake in TPPL. This acquisition, valued at up to ₹636 crore, is crucial because TPPL’s subsidiary operates a valuable 4 MTPA pellet plant and a 212-kilometer slurry pipeline in Odisha. This ensures a steCady flow of iron ore pellets for their steel production in India.

The company’s board is pushing forward with ambitious growth plans across India. This includes an in-principle approval to expand the capacity of Neelachal Ispat Nigam Limited by 4.8 MTPA, focusing on long products. Additionally, they have earmarked funds to establish a 2.5 million-ton Thin Slab Caster at their Meramandali facilities for thinner gauge finished steel.

It also announced a significant MoU with Lloyd Metals & Energy Limited (LMEL) for a partnership in Maharashtra’s Gadchiroli district. This cooperation aims to increase iron ore production and is a key step in their long-term growth. Furthermore, the MoU includes plans for Tata Steel to develop a new greenfield 6 million tons steel capacity in two phases.

About the company

Tata Steel Ltd is Asia’s first integrated private steel company set up in 1907. The company has presence across the entire value chain of steel manufacturing from mining and processing iron ore and coal to producing and distributing finished products. 

Financial Highlights, the revenue from operations grew by 9 percent to Rs. 58,689 crore in Q2 FY26 from Rs. 53,905 crore in Q2 FY25. EBIT grew by 45 percent to Rs. 8,897 crore in Q2 FY26 from Rs. 6,116 crore in Q2 FY25. Accompanied by  growth in net profit to Rs. 3,183 crore in Q2 FY26 

Written by Gourav Pratap Singh

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