Tata Steel and Nippon Steel have formed a Joint Venture to create India’s first Continuous Annealing and Processing Line, producing 600,000 tonnes per annum of automotive cold-rolled steel in Jamshedpur.

Target Information

Tata Steel Limited (TSL) and Nippon Steel Corporation (NSC) have entered into a Joint Venture Agreement to establish India’s inaugural Continuous Annealing and Processing Line (CAPL). This new facility, located in Jamshedpur, is set to produce 600,000 tonnes per annum of automotive cold-rolled steel. Under the agreement, TSL will control 51% of the Joint Venture’s equity, while NSC will own the remaining 49%. The project is estimated to require a capital investment of approximately Rs 2,300 crore, with production expected to commence in 2013.

The Joint Venture aims to fulfill the localization needs of Indian automotive manufacturers for high-grade cold-rolled steel sheets, thereby supporting the expanding Indian automotive sector. Steel supply for the venture will come from Tata Steel's existing operations in Jamshedpur, aligning with Tata Steel’s strategy to enhance its portfolio with value-added steel products. NSC will appoint the Chairman of the Joint Venture Company, while TSL will appoint the Managing Director, ensuring collaborative leadership.

Industry Overview in India

The automotive industry in India has witnessed substantial growth over the past few years, driven by rising consumer demand and improving economic conditions. India is now one of the fastest-growing automotive markets in the world, with both global and d