Tata Steel has approved the acquisition of a 50.01% stake in Thriveni Pellets Pvt Ltd (TPPL) from Thriveni Earthmovers Pvt Ltd for up to ₹636 crore, strengthening its raw material security and expanding its pellet-making capacity. The deal includes 90,06,801 equity shares of ₹10 each, with the final consideration subject to customary closing adjustments. Completion of the transaction is expected within three to four months, pending necessary approvals, including from the Competition Commission of India (CCI).

TPPL’s Asset Base and Ownership Structure

TPPL fully owns Brahmani River Pellets Ltd (BRPL), which runs a 4 million tonnes per annum (MTPA) pellet plant in Jajpur, Odisha, supported by a 212-km slurry pipeline connecting the plant to Barbil.
Before this acquisition, TPPL was held 50.01% by Thriveni Earthmovers and 49.99% by Lloyds Metals & Energy Ltd.
Following the deal, Tata Steel will assume majority control with 50.01% shareholding, while Lloyds Metals will retain its 49.99% stake.

Tata Steel clarified that TPPL has no related-party connections with its promoter entities or those of Thriveni Earthmovers.

Strategic Rationale Behind the Acquisition

TPPL is engaged in manufacturing and trading iron ore pellets, a key input for steelmaking. The acquisition will grant Tata Steel direct access to additional pellet capacity, enhancing the company’s raw material supply chain for its domestic steel operations.
The move aligns with Tata Steel’s long-term plan to ensure efficient, secure, and cost-effective sourcing of iron-bearing raw materials.

Major Capital Projects Receive Green Signal

During the board meeting, Tata Steel also reviewed ongoing and proposed capital expenditures and granted in-principle approval for a 4.8 MTPA expansion at Neelachal Ispat Nigam Ltd (NINL).
Additionally, the board approved funding for:

• A 2.5 MTPA thin slab caster and rolling unit at Meramandali

• A 0.7 MTPA hot rolled pickling and galvanising line at Tarapur

The company said the investments are aligned with its strategy of profitable and sustainable growth and will focus on downstream expansion, mining assets, and infrastructure supporting its India operations.

MoU Between Tata Steel and Lloyds Metals

Lloyds Metals & Energy Ltd announced that it has entered into an MoU with Tata Steel to explore strategic collaboration across multiple areas, including:

• Raw material mining

• Slurry pipeline infrastructure

• Pellet manufacturing

• Greenfield steel projects

• Direct Reduced Iron (DRI) production

• Export of value-added low-carbon iron and steel products

The partnership aims to leverage complementary strengths and promote sustainable growth in India’s steel sector.

Market Reaction

Following the announcement, Tata Steel shares rose up to 1.66%, hitting an intraday high of ₹164.92 on the NSE. On the BSE, the scrip also gained 1.66%.
Lloyds Metals shares climbed 1.16% to an intraday high of ₹1,267.
As of 9:35 AM, Tata Steel was trading 1.02% higher at ₹163.85, outperforming the NIFTY50, which was down 0.06%.

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