Tata Steel’s Managing Director, T.V. Narendran, has highlighted that India’s steel industry is highly concentrated, with only a few players able to sustain operations profitably. He projected that the country’s steel demand could rise to between 250 million and 300 million tonnes in the coming years, driven by infrastructure expansion, manufacturing growth, and the energy transition. Meeting this demand will require significant capital investment to expand capacity and modernise production facilities.
Narendran stressed that maintaining healthy operating margins in the range of 15–20 per cent is essential for steelmakers to fund the scale of investments required. These margins are critical for financing new plants, upgrading technology, and supporting sustainability initiatives, including the transition to green steel production. He also noted that achieving such margins would allow companies to remain globally competitive while aligning with domestic policies encouraging low‑carbon growth.
Industry observers point out that while demand fundamentals remain strong, the sector faces challenges from volatile raw material costs, global trade disruptions, and increasing regulatory focus on emissions reduction. The push for decarbonisation will require steelmakers to invest in renewable energy, hydrogen‑based production methods, and low‑emission raw materials—all of which add to capital requirements.
Narendran’s comments underline that India’s steel industry stands at a turning point: growing domestic demand offers immense opportunities, but sustainable profitability and strategic investment are key to long‑term success. Companies that can balance cost efficiency, capacity expansion, and green transition goals are likely to emerge as leaders in the evolving market.
