NINL, a steel manufacturing unit with a capacity of 1.1 million tonnes located in Odisha, has achieved 100% capacity utilization within just one year of its acquisition by Tata Steel.
Tata Steel completed the acquisition of Neelachal Ispat Nigam Ltd (NINL) on July 4, 2022, through its subsidiary Tata Steel Long Products Ltd (TSLPL), for a total consideration of Rs 12,000 crore. After being non-operational for nearly three years, Tata Steel commenced operations at the NINL unit in October 2023.
Ashish Anupam, MD of Tata Steel Long Products Limited (TSLPL), stated that NINL has successfully ramped up production to its rated capacity of 1 million tonnes on an annualized basis within just nine months of the acquisition. Despite the plant being idle for a significant period, the acquisition was efficiently executed. Anupam further mentioned that the commissioning of a coke oven unit at NINL, the last major facility, is scheduled to be completed in August 2023.
He also highlighted that the NINL acquisition, which was completed in the first half of FY23, is part of Tata Steel's strategic initiatives for growth and long-term value creation. Being part of the Kalinganagar ecosystem, the company is well-positioned to achieve synergistic growth in the future.
As a result of the NINL acquisition, Tata Steel reported higher production and deliveries by TSLPL in FY23. The crude steel production for TSLPL in FY23 reached 0.91 million tonnes, while deliveries stood at 0.82 million tonnes.
The rapid utilization of NINL's capacity by Tata Steel demonstrates the company's effective integration strategy and its commitment to expanding its long products business.