Opportunities
With increasing infrastructure development, growing urbanisation and a drive towards sustainable solutions, the steel industry is poised to unlock significant opportunities, creating a favourable outlook for the sector.
Growth catalysts for future
India a bright spot
0 MnTPA
Expected capacity for
Tata Steel by 2030
India, one of the fastest growing major economies, is likely to become the third-largest economy in the world by 2030. The steel industry will have a major role to support this growth. Increased investments in infrastructure will be a major contributor to the growth of India's domestic steel demand. Infrastructure investment will not only increase steel consumption but also bring the supply chain cost down for steel, thereby creating a virtuous cycle. The domestic manufacturing push under Atmanirbhar Bharat is also expected to aid the growth of steel industry in India. Additionally, India’s demographic dividend coupled with rapid urbanisation will stimulate the steel demand in the Country. As a result, the current low per capita steel consumption is expected to grow rapidly. Tata Steel with its robust expansion plans of doubling capacity to 40 MnTPA by 2030 and strategic raw material cost advantage, is well positioned to leverage this growth opportunity.
Bringing international synergies
Europe is expected to have a carbon border tax mechanism before India. As a result, the transition to greener steel is also expected to be faster. Tata Steel shall have first-hand experience of this transition through its operations in Europe. This experience can then be leveraged for transitioning in India in terms of process and technology transfer. Another important area of synergy is unified strategic procurement for India, and Europe. This has potential to reduce costs and improve supply chain reliability further.
Colour coated coils at Tata Steel Meramandali
Adding value through customer centricity
Urbanisation
A key driver of
steel across nations
Customer expectations are rapidly changing and accordingly the nature of steel demand and the channel to reach customers is also evolving. Rapid urbanisation in India demands faster construction. As a result, modularisation, amenable to the fast pace of construction and better aesthetics is crucial. Rapid increase in per capita income is also driving the growth of automotive, white goods and consumer goods demand. Globally, focus on sustainability has shifted consumer demand in areas of mobility, energy efficient construction and renewable power. A culture of customer-obsession and technologyled product innovation will enable Tata Steel to be the supplier of choice for discerning customers.
Driving operational excellence
Leading the way with digital
0
Manufacturing units are in the
Global Lighthouse Network
Changes in demography and stringent safety norms supported by more economical automation technologies will facilitate remote operations through Digital Twins. Repetitive tasks shall be replaced by artificial intelligence powered machines. Tata Steel has taken multiple initiatives in this direction. While initial research on Industry 5.0 is in progress, significant steps to scale-up Industry 4.0 are being taken. Tata Steel is one of the few enterprises with three manufacturing sites in the Global Lighthouse network by World Economic Forum - Jamshedpur and Kalinganagar in India, and IJmuiden in the Netherlands. The nature of consumption too is being influenced by technology. Digital commerce is rapidly growing even in heavy industries like steel. Tata Steel continues to grow its digital footprint through Aashiyana and DigECA for individual home builders and small businesses, respectively. BaanClickBuild digital application from Tata Steel Thailand is used for scaling online retail sales in Thailand. Supply chain visibility solution - COMPASS is another digital initiative being deployed extensively for partners in India, while a similar tool Nexus is deployed for partners in Europe.
Sustainability a catalyst for change
Tata Steel Jamshedpur is the
first site in India to receive
the certification
While climate change poses significant challenges for the steel industry, it also presents an opportunity to lead the way through cutting-edge research and innovation. Tata Steel has identified focused interventions across hydrogen fuel technology, carbon capture and use, and reduction in specific water consumption, among others, across its operating sites. Tata Steel Jamshedpur is a national benchmark and Tata Steel IJmuiden is a global benchmark in CO2 emission, with other sites also working towards
best-in-class performance with the existing asset footprint. Tata Steel Jamshedpur plant has become the first site in India to receive ResponsibleSteelTM certification. Tata Steel Nederland BV on the other hand, has made initial investment of 65 million Euros to design a new hydrogen-based steel production plant, planned to be operational by 2030. Tata Steel is also focussing on circular business model and is setting up scrap based electric arc furnace, while planning to scale its steel recycling business in India.
Hilumin® for EV batteries
Innovation and technology to be key differentiators
To meet the changing consumer demands and the growing focus on sustainability, businesses need to innovate in processes, products, and business models. This necessitates a robust technology change management process. In this regard the VIVA (Ventures, Innoventure and Alliances) team, which was formed to bring outside-in innovations, has made significant headway in creating ecosystems with academia, industry bodies, research institutes and start-ups. The Innovent team specifically works on unique ideas for consumers by understanding their changing needs. We also work with start-ups to promote quick innovation and gain an advantage in different parts of operations. Our Carbon Capture pilot plant with 5 tonnes per day capacity is an example of driving innovation through partnerships. Another notable initiative is Dhurvi Gold-a soil conditioning solution developed from Basic Oxygen Furnace slag in partnership with external partners. Tata Steel Europe on the other hand, has been working on product innovations such as MagiZinc® for solar energy applications, Hilumin® for EV batteries and Zeremis for green steel products.
Creating a diverse and inclusive workplace
Culture as a source of competitive advantage
Top Employer
Recognised by India
Workplace Equity Index
for LGBTQ+ inclusion
A strong culture provides employees with a purpose-driven work environment. Tata Steel has always fostered a culture of continuous improvement, safety, ethics, environment consciousness and community development for decades, through robust internal processes and focussed initiatives. In addition, we also strive to create a culture of innovation, agility and strategic orientation. Our application of Agile Ways of Working (AWOW) across strategic projects, is a significant step in this direction. Tata Steel promotes an inclusive and diverse culture across functions. We have been recognised as Top Employer for LGBTQ+ inclusion, by India Workplace Equality Index (IWEI), in the past and joined the Global Parity Alliance (GPA) by the World Economic Forum as one of the founding members. Tata Steel UK sponsors notable local events which promote community spirit and raise much-anticipated funds for good causes and charities in the local area. Relative to national and industry statistics, TSUK’s gender pay gap continues to be at the lower end.
Fibre Reinforced Polymer Park, Tata Steel Jamshedpur
New growth levers – shaping tomorrow
New materials and applications are becoming viable in both established and emerging industries due to advancements in technology and major trends in the market. This creates opportunities for growth and development in different sectors. Our adjacent businesses are well placed to leverage their competencies to unlock these opportunities. The idea is to create businesses that complement the steel business. Currently, we are operating in high-potential and technology-intensive new materials viz. fibre reinforced polymer composites, medical materials, and graphene. Besides, Services and Solutions is also reporting multifold growth in recent years, through Pravesh and Nest-In solutions. Pravesh provides home solutions, while Nest-In provides modular construction solutions, using steel as the primary input material. Tata Steel Europe extensively works with partners to provide construction solutions that are efficient, customised and green. Lightweight composite floor deck that creates flexible open spaces is one of many such examples.