Tata Steel Targets ₹11,500 Crore Global Cost Cut in 18 Months

Tata Steel is launching a fresh cost-cutting drive aimed at saving ₹11,500 crore (approximately $1.3 billion) across its global operations within the next 12 to 18 months, the company’s Chief Financial Officer Koushik Chatterjee announced.

The cost transformation initiative will focus on operations in India, the UK, and the Netherlands, building on the ₹6,600 crore in structural cost savings achieved in FY25. The plan includes aggressive rationalisation of fixed costs, improvements in manufacturing efficiency, better procurement, and tighter control over overheads.

“Looking ahead to FY26, our focus continues to be on controllable factors,” Chatterjee said during a post-earnings analyst call, according to PTI. “We are targeting further cost takeouts of almost ₹11,500 crore across geographies.”

The push comes as Tata Steel ramps up expansion at its Kalinganagar plant in India and transitions to low-carbon steelmaking technologies in Europe, particularly in the UK and the Netherlands. These initiatives are accompanied by workforce restructuring.

In Q4 FY25, Tata Steel’s consolidated costs were reduced to ₹54,167.61 crore from ₹56,496.88 crore in the same quarter last year. Consolidated net profit was at ₹1,200.88 crore in the March quarter.

UK Focus: 29% Cut in Fixed Costs

Tata Steel UK is targeting a 29% year-on-year reduction in fixed costs, down from £995 million in FY24 to £762 million in FY25, with a goal of £540 million by FY26. The UK government has committed £500 million to support Tata Steel’s switch to electric arc furnace technology. The company has secured planning approvals, chosen technology partners, and spent £35 million on the project in FY25.

Tata Steel’s UK business, dominated by the 3 MTPA Port Talbot plant, employs around 8,000 individuals.

Netherlands: £500 Million Cost Savings

In the Netherlands, the IJmuiden plant, which produced 6.75 MTPA of liquid steel in FY25, will lead the effort to save £500 million through production efficiency, tighter cost controls, and product mix optimisation.

The company’s focus remains clear: streamline global operations, enhance efficiency, and transition toward a greener steel future.