Digital drive and European restructuring boost Tata Steel as it eyes 40 MTPA

Tata Steel is accelerating its journey toward a 40 million‑tonne‑per‑year (MTPA) production capacity, combining an aggressive expansion plan with a robust digital transformation agenda. Chairman N. Chandrasekharan revealed at the 119th AGM that the recently launched Phase‑II at the Kalinganagar complex has pushed total capacity to 26.1 MTPA.

The company is simultaneously scouting for new plant locations and analysing land‑acquisition options to sustain the long‑term capacity target. In Europe, recent restructuring initiatives have begun to bear fruit, yet the Dutch operations face heightened environmental compliance pressures, with regulations now tighter than the broader EU framework. The management is in continuous negotiations with the Dutch government to devise a durable, environmentally compliant and financially sound operating model.

Tata Steel’s digital push is another pillar of its growth strategy. Over 860 artificial‑intelligence models are now embedded across the firm’s value chain, aimed at boosting output, sharpening operational efficiency and cutting costs. The AI‑enabled platforms Asiana and DigiCea together recorded a gross merchandise value (GMV) of INR 9,360 crore for the fiscal year 2025‑26, marking a 161 percent rise over the prior year.

Chandrasekharan concluded that the company’s future will be defined not only by expanding capacity but also by leveraging technology, achieving operational excellence and committing to sustainable investments to become a larger, greener and smarter steel manufacturer.

On the market side, Tata Steel shares edged up 0.71 percent to around INR 186.49 on the NSE at 2:15 p.m. on Thursday. While the stock has slipped more than 11 percent in the last month, it is up 2 percent over six months and more than 12 percent over the past year, trading within a 52‑week range of INR 152.51 to INR 224.40.