Tata Steel’s Cost Masterplan: ₹11,500 Crore Savings Unlocked!

Tata Steel is ramping up its cost transformation strategy, targeting ₹11,500 crore in savings across India, the UK, and the Netherlands over the next 12–18 months. The company’s Executive Director and CFO, Koushik Chatterjee, outlined the ambitious plan during a post-earnings analyst call, emphasizing controllable cost reductions and operational efficiencies.

 

Key Highlights:

 

- India Focus: Tata Steel aims to save ₹4,000 crore by optimizing employee productivity, supply chain efficiencies, and conversion costs (₹1,000–1,200 per tonne).

- UK Strategy: Fixed costs are set to drop 29% YoY, with a target of 540 million pounds in FY26, down from 995 million pounds in FY24. The UK government has pledged 500 million pounds to support Tata Steel’s transition to electric arc furnace technology.

- Netherlands Outlook: The company is working towards 500 million pounds in savings through production efficiency, cost control, and product mix optimization.

- Financial Performance: Tata Steel reduced expenses to ₹54,167.61 crore in Q4 FY25, down from ₹56,496.88 crore a year earlier, while consolidated net profit surged to ₹1,200.88 crore.

With green steel initiatives and capacity expansion in motion, Tata Steel is positioning itself for a leaner, more sustainable future.

 

Sources: Economic Times, Times of India