Indian steelmaker Tata Steel Limited achieved cost savings to the tune of $1.13 billion through its cost transformation program in the fiscal year 2025-26, around 95 percent of its savings target of $1.19 billion set for the fiscal year, the company said in its address to investors on Wednesday, July 22.
The company has now set a fresh target of generating $741 million in cost improvements during 2026-27 through better raw material efficiency, supply chain optimization, lower power and fuel costs, improved maintenance practices and operational efficiencies across geographies, it said.
The company said it is increasingly deploying AI across manufacturing operations to improve fuel efficiency, enhance productivity and strengthen workplace safety. It is also rolling out organization-wide generative AI training programs to build future-ready capabilities.
Meanwhile, Tata Steel's digital platforms crossed $1 billion in sales in 2025-26, reflecting growing adoption of its online customer ecosystem for both retail and small buyers.
On capacity expansion, it said that India continues to be the company's primary growth engine. Tata Steel said it plans to expand its crude steel capacity from around 27.4 million mt per year to more than 40 million mt per year.
The expansion pipeline includes a 4.8 million mt per year expansion at Neelachal Ispat Nigam Ltd. (NINL), 2.5 million mt per year of finished steel capacity at Tata Steel Meramandali, and a 6 million mt per year greenfield project in the western state of Maharashtra.
Alongside upstream capacity, the company is investing in downstream businesses, targeting significant increases in tubes, wires and tinplate capacity while commissioning a new hot rolled pickling and galvanizing line.
A major focus remains the second phase expansion of its Kalinganagar steel mill in Odisha, with plans to optimize the 2.2 million mt per year cold rolling mill complex, aimed at improving operational efficiency and enhancing value-added steel production, the company said.
