23 Jan 2018 14:01 IST

Tata Steel sees great growth opportunity in India

Board approves ₹12,800 cr rights issue

Tata Steel sees great growth opportunity in India -- both organic and inorganic.

“We see great opportunity to grow in India and we have said we want to grow in India. We are well-positioned because we have organic and inorganic opportunities to grow,” Tata Steel Global CEO and Managing Director, T V Narendran, had said yesterday.

Narendran was speaking to reporters on the sidelines of Kolkata Literary Meet 2018 which began yesterday.

“Inorganic opportunities come in a while and we need to pursue them. Let us see what happens. It is a great opportunity for anyone in the steel industry who has the appetite and ambition to grow in India,” he said while speaking about Tata Steel bidding for some stressed steel assets facing National Company Law Tribunal proceedings under the Bankruptcy and Insolvency Code.

Tata Steel has bid for companies like Bhushan Steel, Essar Steel and Electrosteel Steels. Narendran said the company’s Kalinganagar project in Odisha has shaped up well and it is in full production. "It is also the right time to plan for the second phase which is already approved by the board,'' he said.

Tata Steel board has approved the next phase of capacity expansion in Kalinganagar to 8 million tonnes per annum from 3 million tonnes at present. The board has also approved a rights issue for an amount up to ₹12,800 crore.

The expansion project will cost the company ₹23,500 crore and will be completed within 48 months. The total capacity of Tata Steel India operations is 13 million tonnes per annum at present.

The company shares were trading higher by 3.92 per cent at ₹781.60 on the BSE.