Tata Steel is aiming to cut costs by ₹11,500 crore (about US$1.3 billion) across its global operations over the next 12–18 months, as per news reports. The company is working on a strategic “cost takeout” plan, which means cutting unnecessary expenses to improve profits and efficiency.
At 3:03 PM, Tata Steel's share price was up 0.057% and was trading at ₹157.64. In FY25, Tata Steel already achieved ₹6,600 crore in cost savings by reducing fixed costs, improving manufacturing efficiency, and optimising raw material usage.
In India, Tata Steel is expanding its Kalinganagar plant to 8 million tonnes. The company plans to save ₹4,000 crore by improving employee productivity and supply chain efficiency and reducing conversion costs by ₹1,000–1,200 per tonne. A large portion of the savings will come from investing in high-impact projects that have a quick return.
About 80% of the ₹15,000 crore capital expenditure for FY26 will be spent on projects in India.
In the UK, Tata Steel is in the middle of a major transition. The company is shifting to electric arc furnace (EAF) technology to reduce carbon emissions at its Port Talbot steelworks. Backed by £500 million from the UK government, Tata Steel has already completed design and planning work and spent £35 million on the project in FY25.
Tata Steel plans to reduce its fixed costs by 29% year-on-year, bringing them down from £995 million in FY24 to £540 million in FY26. The focus will be on IT upgrades, cutting corporate overheads, and streamlining operations.
Tata Steel’s IJmuiden plant in the Netherlands produced 6.75 MTPA of liquid steel in FY25. The company is working to save £500 million by improving production volume, employee output, and product mix. It is also in talks with the Dutch government and European Commission to secure funding and policy support for its decarbonisation and environmental projects.
Tata Steel’s expenses fell to ₹54,167.61 crore in Q4 FY25, compared to ₹56,496.88 crore a year earlier. Its net profit more than doubled to ₹1,200.88 crore in the March 2025 quarter. Meanwhile, the company’s net debt reduced to ₹82,579 crore, down by ₹6,200 crore from September 2024.
Tata Steel is focusing heavily on reducing controllable costs while also modernising operations in India, the UK, and the Netherlands. Backed by government support and internal reforms, the company is preparing for a more efficient and greener future.
Read more on Tata Steel Share Price in Focus on May 13; Announced FY25 Results & ₹3.60 Dividend.
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Published on: May 19, 2025, 3:12 PM IST
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