This move comes after Tata Steel acquired NINL, in early 2022, for Rs 12,100 crore through a government divestment process. NINL is expected to benefit from Tata Steel's expertise in the steel industry, allowing it to grow its long products business. Analysts believe this investment is a positive step for Tata Steel, as it strengthens their presence in the long products market and aids NINL's growth trajectory.
Neelachal Ispat Nigam Ltd (NINL) is an integrated iron and steel plant located at Kalinganagar, Duburi, Dist-Jajpur, Odisha. Presently, NINL produces pig iron and LAM coke, along with other products like nut coke, coke breeze, crude tar, ammonium sulphate, and granulated slag (phase-l). The company also has its own captive power plant and exports a substantial quantity of power.
Tata Steel Long Products Limited (TSLP), a subsidiary of Tata Steel, has completed the acquisition of 93.71% in NINL from various entities, including MMTC Ltd., NMDC Ltd., MECON Ltd., and others. The acquisition was made for Rs. 12,100 Crore.
NINL is located in close proximity to Tata Steel's state-of-the-art facility at Kalinganagar. This acquisition provides synergies of shared infrastructure, resources, and management. Tata Steel aims to build a dedicated and sustainable long products complex.
Tata Steel plans to restart the existing 1-million tons per annum steel plant at NINL and simultaneously work on expanding its capacity. The goal is to build a 4.5 million tons per annum state-of-the-art long products complex in the next few years, with further expansion to 10 million tons per annum by 2030.
NINL will focus on producing long products such as wire, bars, and rods, which are crucial for India's infrastructure development and construction sector.
This investment aligns with Tata Steel's commitment to Odisha and its growth strategy in the long products business.
In steel manufacturing, long products refer to a variety of steel shapes and forms that are typically elongated or have extended lengths. These include — Hot Rolled Bar commonly used in construction and manufacturing; Cold Rolled or Drawn Bar; Rebar (Reinforcing Bars), used to reinforce concrete structures, such as in buildings and bridges; Railway Rails, the tracks on which trains run, made from long steel sections, and others.
Long products play a crucial role in construction, infrastructure, and manufacturing sectors.
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