Tata Steel is poised to acquire a 50.01% stake in Odisha-based Thriveni Pellets, according to multiple people familiar with the development. Financial details of the transaction have not been disclosed. The proposed acquisition is expected to strengthen Tata Steel’s raw-material supply chain, as iron-ore pellets are a key input used alongside coking coal in blast furnaces to produce steel.
Thriveni Pellets, through its wholly owned subsidiary Brahmani River Pellets, operates a 4-million-tonne pellet plant in Jajpur, Odisha, located close to Tata Steel’s Kalinganagar facility and Neelachal Ispat Nigam, which Tata acquired a few years ago. Following the acquisition, Thriveni Pellets will become a joint venture between Tata Steel and Lloyds Metals & Energy, which recently purchased a 49.99% stake from Adler Industrial Services.
Brahmani River Pellets, one of the country’s largest merchant pellet producers, also operates a 4.7-million-tonne iron ore beneficiation plant in Barbil, Odisha. The two facilities are linked by a slurry pipeline. In 2016, Tata Steel signed a definitive agreement to acquire 100% of Brahmani River Pellets for ₹900 crore; however, the deal was terminated in 2017 after certain conditions were not fulfilled. Tata Steel had planned to integrate the operations with its Kalinganagar facility.
Brahmani River Pellets reported a profit of ₹38.67 crore in FY24 on revenues of ₹2,473.91 crore. Having commenced commercial production in 2023, the company is strategically located in Odisha, a state that contributes over half of India’s iron ore output.
