The Indian economy is likely to become the third largest economy by 2030, and the steel industry will play a pivotal role in this growth journey. With large raw material reserves, a strong base of technically skilled workforce and one of the fastest growing markets globally, India offers visible structural advantages for the steel industry to flourish. The country’s low per capita steel consumption versus global average provides significant headroom for growth.
The National Steel Policy 2017 seeks to create a globally competitive steel industry in India with 300 MnTPA steelmaking capacity and 158 kg per capita steel consumption by FY 2030-31. Government-led investment in infrastructure, rapid urbanisation, rising preference for personal mobility, growth in capital goods sector and the government’s focus on making India ‘Atmanirbhar’ are expected to stimulate steel demand in India. With a leadership position in key market segments, world-class production facilities and cost leadership, we plan to double our capacity to 40 MnTPA by 2030, to capitalise on this vast opportunity and contribute towards the nation’s development agenda.
Customer needs are evolving and the channel deployed to reach the customer is changing. Digital platforms are gaining more traction even in the industrial sectors such as steel. Growing urbanisation will see demand for steel focussed on modularisation, amenable to the fast pace of construction and better aesthetics. With changing demographics and higher affordability, the nature of steel consumption in automotive, white goods and other consumer goods industries is fast evolving. We aspire to be the supplier of choice for discerning customers, driven by a culture of customer-obsession and ability to provide the best products and service experience.
Climate change is a challenge for a ‘hard-to-abate’ sector such as steel. However, it also provides opportunities. With sustainability gaining centre stage globally, and significant investments being directed towards green technology, we have identified focussed intervention across hydrogen fuel technology, carbon capture and use, and reduction in specific water consumption, among others. Tata Steel Jamshedpur is a national benchmark in CO2 emission, with other sites improving every year. Specific plans are in place to improve sustainability performance across locations. We also ventured into steel recycling with the first plant commissioned in Rohtak, to capitalise on increased scrap availability and demand in India, and move towards circular steel manufacturing models.
National benchmark - Created by Tata Steel Jamshedpur (as per worldsteel methodology)
Tata Steel strives to be a technology and innovation leader in the steel industry, leveraging in-house capabilities and building external ecosystems. Through VIVA (Ventures, Innoventure and Alliances), we have been able to build on opportunities provided by the external ecosystem and accelerate our journey towards achieving technology leadership. The Innovent Team focusses on innovation for customers with a deep understanding of their emerging needs. Our collaborations with start-ups have resulted in pilots in carbon capture and use. We plan to engage on more such opportunities across the steel value chain.
Pilot projects are being driven in collaboration with start-ups
The future of work and the future of consumption are evolving, accelerated by the pandemic. Remote operations and digital commerce are the new normal. Digital is no longer just an enabler but is key for creating and unlocking value. Tata Steel is also taking steps to scale Industry 4.0 technologies in its operations. During FY 2021-22, three operating sinter plants in Jamshedpur were merged into a far-site single operation control centre, a first in India. On the D2C front, we have significantly scaled up the Aashiyana and DigEca platforms for our individual home builders and small businesses, respectively.
at Jamshedpur merged into far-site single operational control centre
Technology and megatrends are creating market opportunities for new materials and applications in existing and emerging sectors. Tata Steel with its portfolio of adjacent businesses is best suited to leverage this trend and, in the process, create new revenue streams that complement the steel business. We are building new businesses in high-potential and technology intensive new materials such as, fibre reinforced polymer composites, medical materials, and graphene. Our Services and Solutions portfolio includes Pravesh and Nest-In, which provide home solutions and steel-based modular construction solutions, respectively.
Unique modular construction solutions offered by Tata Steel
At Tata Steel, we have undertaken several ‘industryfirst initiatives’ over the past decades to inculcate a culture of ethics, safety, continuous improvement, environment consciousness and giving back to the community. Our focus on diversity and LGBTQ+ policies are first-of-its kind. We are also fostering a culture of agility, innovation, health and wellness. Building environmental consciousness is another culture element which we are actively working towards.
