2 weeks ago
Tata Steel Doubles India Capacity Under Chandra, Europe Remains Challenge
Tata Steel is a very big company that makes steel, the strong metal used to build bridges, cars, and buildings.
In 2017, a man named N Chandrasekaran became the boss of the Tata group of companies.
He decided that Tata Steel should make much more steel in India, its home country.
Over about eight years, the amount of steel Tata Steel makes in India grew from 13 million tonnes to more than 27 million tonnes.
India is now the part of the company that earns the most money.
Tata Steel also has factories in Europe, in the United Kingdom and the Netherlands, which have lost money for a long time.
The company bought a British steel company called Corus in 2007, and that turned out to be hard.
Now Tata Steel is building a new kind of factory in Port Talbot that will make steel with electricity instead of coal.
Some other Tata businesses are also trying new things, like shopping apps and computer chips, but those are still losing money.
Tata Steel's India capacity more than doubled from 13 million tonnes in FY2018 to 27.4 million tonnes in FY26, making India the group's primary cash engine.
Chandrasekaran said European losses have been 'stemmed' but work remains, with the Port Talbot electric arc furnace, under construction since July 2025, expected to improve UK economics.
Acquisitions of Bhushan Steel, Usha Martin's steel business, and Neelachal Ispat Nigam, plus the Kalinganagar expansion, support Tata Steel's 40 million tonne capacity target.
Tata Consumer Products, formed in 2020, built a 'house of brands' through acquisitions including Capital Foods, Organic India, and Soulfull.
Tata Digital reported a FY26 loss of Rs 4,974 crore on revenue of Rs 35,990 crore, while Tata Electronics is investing about Rs 91,000 crore in a Dholera chip fabrication plant.
- Who
- N Chandrasekaran, chairman of Tata Sons since February 2017, and Tata Steel, along with group businesses such as Tata Consumer Products and Tata Digital.
- What
- Tata Steel more than doubled its Indian capacity through acquisitions and expansion, making India its primary cash engine, while managing costly restructuring of European operations and a broader group push into consumer and digital businesses.
- Where
- India (including Kalinganagar in Odisha and Dholera in Gujarat), the United Kingdom (Port Talbot, South Wales), and the Netherlands (IJmuiden).
- When
- From February 2017 through FY26, including Tata Steel's annual general meeting on July 2 and the start of Port Talbot's electric arc furnace construction in July 2025.
- Why
- To make India the group's main growth and cash-generation engine, stem losses in Europe, and pursue a 40 million tonne capacity target while transforming the company into a larger, greener business.
Continued Investment
Financial Caution
Funding Tata Digital's loss-making businesses
Continued Investment
The group must keep investing in BigBasket, 1mg, and Tata Cliq to compete in quick commerce and fast-changing digital markets.
Financial Caution
With Rs 4,974 crore in FY26 losses and Rs 26,000 crore already invested, the board reportedly questions how long these businesses should keep losing money.
Consumer business capital allocation
Continued Investment
Tata Consumer Products' acquisitions helped build a 'house of brands' and tap the growing premiumisation trend, diversifying the portfolio.
Financial Caution
Experts such as Arvind Singhal say 'some hard decisions' and better capital allocation are needed to give stronger returns to shareholders.
Key facts
- Tata Sons chairman since
- February 2017
- India capacity FY2018
- 13 million tonnes
- India capacity FY26
- 27.4 million tonnes
- UK capacity now
- 3.2 million tonnes (down from 10 million tonnes over 15 years)
- Kalinganagar capacity
- 8 million tonnes after Phase 2 (up from 3 million tonnes)
- Bhushan Steel acquisition
- Rs 35,200 crore in 2018
- Tata Digital FY26 loss
- Rs 4,974 crore on revenue of Rs 35,990 crore
- Tata Electronics fab investment
- About Rs 91,000 crore in Dholera, Gujarat
Quotes
N Chandrasekaran
Chairman of Tata Sons and Tata Steel
“"Many naysayers probably thought that this day would not come. And that's why it's important," he said.”
rediff.com
“the firm has "stemmed the losses"”
rediff.com
Sources
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