Tata Steel aims to raise its ferro alloy share to 70–80%, reducing import dependence

As India aims to become a steel-manufacturing powerhouse with a capacity of 500 million tonnes by 2047, major steel companies are ramping up investment in their input raw-material supply chains. Tata Steel recently said it would raise the share of high-quality ferro alloys in its product portfolio from around 20% at present to 70–80% in the coming years. This is regarded as one of its key strategies to reduce dependence on imports while strengthening the competitiveness of India's steel industry in the high-quality steel segment.

The information was shared by Mr. Sushanta Kumar Mishra, head of Tata Steel's Ferro Alloys and Minerals Division (FAMD), at the 15th Indian Minerals and Metals Forum, themed "Building a self-reliant minerals and metals sector for India".

Shifting focus from output to quality

According to Mr. Mishra, most of the raw materials used to produce alloy steel and specialty steel in India still have to be imported. Beyond critical metals such as nickel, many technically demanding ferro alloys — particularly ferrochrome and alloys used for specialty steel — are still not produced in sufficient quantities domestically.

At present, value-added products account for only about 20% of Tata Steel's ferro alloy portfolio. The company aims to raise this share to 70–80% in order to gradually replace imports and meet the growing demand of the domestic market.

Unlike the earlier period when producers focused mainly on expanding capacity, Tata Steel's new strategy shows that the ferro alloy industry is shifting toward competing on metallurgical technology, product quality and added value.

Focusing on high-tech alloy lines

To achieve this goal, Tata Steel is investing in the development of various ferro alloys and specialized materials for high-quality steel production, including:

• Ferrochrome with a chromium content above 65%;
• Low-carbon ferrochrome;
• Ferrosilicon with an ultra-low silicon content;
• Alloys using strategic minerals such as nickel;
• Raw materials for producing low-carbon steel and specialty alloy steel.

These are products that require advanced technology, carry high economic value and are widely used in the automotive, energy, precision engineering, aviation and defense industries.

Policy will be the decisive factor

According to Tata Steel's leadership, reducing dependence on imported ferro alloys for the specialty steel sector remains one of the major challenges. The company is therefore focusing on building a domestic supply chain and expanding its portfolio of high value-added products to meet future demand.

Alongside its production investment strategy, Tata Steel also recommended that the Indian Government strengthen policy support for the critical minerals sector. The company proposed a clearer mechanism for granting mining rights, together with investment incentives, financial support and initial subsidies for technology-intensive, capital-intensive projects.

Mr. Mishra stressed that critical minerals should not be subject to the same upfront mining-rights payments and royalties as ordinary minerals. In his view, appropriate policies would spur investment in high-tech sectors and help enhance India's self-reliance in strategic raw materials for the steel industry.