COMPETITIVE · MARKET STRUCTURE · INDIA
Tata Steel set to acquire 50.01% stake in Thriveni Pellets
Change
Tata Steel is set to acquire a 50.01% stake in Odisha-based Thriveni Pellets.
Why it matters
Thriveni Pellets owns Brahmani River Pellets, which operates a 4.0 million-tonne-per-year pellet plant in Jajpur and a 4.7 million-tonne beneficiation plant at Barbil linked by a slurry pipeline. Lloyds Metals & Energy holds a 49.99% stake and would become a joint-venture partner. Lloyds operates the Surjagarh iron-ore mine and has environmental clearance to expand mining up to 26 million tonnes per year. Tata Steel previously signed a 2016 agreement to acquire 100% of Brahmani River Pellets for 900 crore that was terminated in 2017.
Implications
- · Concentrates decision-making over merchant pellet output and allocation under Tata-led ownership.
- · Direct access to pellet and beneficiation capacity adjacent to Kalinganagar and Neelachal alters local sourcing and logistics routing for blast-furnace feedstock.
- · Joint-venture structure with Lloyds changes the commercial interface between pellet production and Lloyds' upstream ore supply, including capacity from Surjagarh.
Who is affected
- · Tata Steel procurement and supply-chain managers
- · Operations and procurement teams at Kalinganagar and Neelachal steel plants
- · Lloyds Metals & Energy management
- · Merchant pellet manufacturers and pellet buyers
Source
Topics
Business & Markets Mergers & Acquisitions Supply Chain & Logistics Manufacturing