Tata Steel Plans Majority Hold in Thriveni Pellets to Boost Supply

Tata Steel is moving to acquire a 50.01% stake in Thriveni Pellets, marking a major shift in its raw material strategy.

People familiar with the matter confirmed the development but did not share the deal value. The move strengthens Tata Steel’s supply chain as iron ore pellets remain essential for blast furnace operations alongside coking coal.

Thriveni Pellets operates through its fully owned unit, Brahmani River Pellets, which runs a 4-million-tonne pellet plant in Jajpur, Odisha.

The plant sits close to Tata Steel’s Kalinganagar facility and Neelachal Ispat Nigam, a company Tata bought a few years ago. Once the acquisition closes, Thriveni Pellets will turn into a joint venture between Tata Steel and Lloyds Metals & Energy, which recently acquired a 49.99% stake from Adler Industrial Services.

Also Read: How Engineered Seals Are Changing Power and Process Plants

Brahmani River Pellets is one of India’s largest merchant pellet producers. It also owns a 4.7-million-tonne beneficiation plant in Barbil, linked to the Jajpur unit through a slurry pipeline, creating an efficient material flow. The company began commercial output in 2023 and is well-positioned in Odisha, a state that contributes over half of India’s iron ore production.

This isn’t Tata Steel’s first attempt to secure the asset. In 2016, it signed an agreement to buy Brahmani River Pellets entirely for ₹900 crore, but the deal fell through the next year over unmet conditions. Tata had planned to integrate the operations with Kalinganagar.

For FY24, Brahmani River Pellets reported a profit of ₹38.67 crore on revenue of ₹2,473.91 crore, underscoring its growing importance within the Tata Steel supply ecosystem.