Tata Steel's ₹636-Crore Move Secures 50% Stake in Thriveni Pellets

Tata steel is making a serious move to gain a firm grip in the Indian steel market by acquiring a 50.01 per cent stake in Thriveni Pellets Pvt Ltd at 636 crore.

The acquisition will stabilize the supply chain of raw materials in the company and facilitate the future expansion. The acquisition was agreed upon by the board, December 11, 2025, which was one of many strategic actions in the expansion strategy of Tata steel.

Thriveni Pellets is the owner of the Brahmani River Pellets Ltd which is a major player in the Indian market with pellets. The plant is situated in Jajpur, Odisha and has the capacity of 4 tonne per year and is linked by a 212km slurry pipeline that transfers the iron ore in a very efficient manner.

Iron ore pellets also play an important role in the running of blast furnace and are important in the production of steel and therefore provide Tata Steel with a stable and consolidated source of raw materials. The other 49.99 proportion will remain in the hands of Lloyds Metals and energy.

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It is hoped that the takeover will be completed in three to four months, pending regulatory clearances, such as those of Competition Commission of India. Besides this major deal, the board of Tata Steel has also reviewed other expansion plans, including the expansion plans at Neelachal Ispat Nigam Ltd and new rolling mills. This is an indication of a multi-pronged process of scaling its business in India.

Industrially, it is beneficial to have access to pellet capacity directly as it gives Tata steel the chance to minimize its reliance on external suppliers and to balance costs. Iron ore and pellet market may be unpredictable and hence this is in line with the overall strategy of Tata steel to improve its domestic supply chain, operational resilience, and future capacity building in both steelmaking and downstream markets.

The market observers view this as a major move towards vertical integration whereby the Tata steel will be in a better position to fulfill the demand and control the supply chain risks in the competitive Indian steel market.