Tata Steel plans to acquire a controlling stake in an Indian pellet producer to strengthen its raw material supply chain

Tata Steel of India is reportedly planning to acquire a 50.01% stake in Thriveni Pellets, a company based in Odisha, to gain controlling interest. M120-23S Grain oriented electrical steel, This move is a key component of Tata Steel's long-term raw material security strategy, aimed at strengthening its control over the supply chain of pellets, a crucial raw material for steel production.

Thriveni Pellets operates two core assets through its wholly-owned subsidiary, Brahmani River Pellets: a 4 million-ton-per-year pellet plant in Jajpour and a 4.7 million-ton-per-year iron ore beneficiation plant in Babir. The two plants are connected via slurry pipelines, forming a highly efficient and integrated production system.

The strategic value of this acquisition is particularly prominent. The pellet plant boasts a prime location, adjacent to Tata Steel's Kalinganagagar steel plant and its previously acquired Nilchar Steel Company. M120-23S Grain oriented electrical steel, This proximity will significantly reduce logistics costs, optimize production schedules, and create strong regional operational synergies.

Following the acquisition, Thriveni Pellets will become a joint venture between Tata Steel and Lloyds Metals Energy (the latter already holds a 49.99% stake). The collaboration is expected to leverage the strengths of both companies to jointly drive the long-term development of their pelleting and beneficiation businesses.

The target company is a formidable player. As one of India's leading commercial pellet producers, Brahmani River Pellets performed strongly in fiscal year 2024, achieving revenue of approximately ₹247.39 billion and a profit of approximately ₹3.87 billion. M120-23S Grain oriented electrical steel, The company only commenced commercial production in 2023, and its rapid growth is largely attributed to its location in Odisha—a region that contributes more than half of India's iron ore production.

This is not the first acquisition attempt for Tata Steel. In 2016, it planned a full acquisition, but the deal was terminated due to unmet conditions. The resumption of the acquisition process clearly reflects Tata Steel's efforts to strengthen its upstream resource layout to support its continuously expanding steel production capacity and achieve deeper integration of the industrial chain.