Tata Steel Acquires 50.01% of Thriveni Pellets from B. Prabhakaran-Led TEMPL, Bolstering Domestic Raw Material Control

In a move calculated to fortify its raw material independence, global steel giant Tata Steel Ltd. has announced it will acquire a 50.01% majority stake in Thriveni Pellets Private Limited (TPPL) for a cash consideration of up to ₹636 crore. The acquisition is a pivotal step in securing a consistent, long-term supply of high-quality iron ore pellets, a fundamental input for its rapidly expanding steel operations in India.

The shares are being purchased from Thriveni Earthmovers Private Limited (TEMPL), the company founded and led by mining entrepreneur Mr. B. Prabhakaran. Prabhakaran is widely recognized for scaling TEMPL into one of India’s largest Mine Development and Operator (MDO) firms, and for his transformative role in managing the iron ore assets of Lloyds Metals & Energy Ltd.

The deal gives Tata Steel majority control over TPPL’s valuable assets, which include a 4 Million Tonnes Per Annum (MTPA) pellet plant in Jajpur, Odisha, along with a crucial 212-kilometre slurry pipeline infrastructure. These assets are vital for the cost-efficient transportation and processing of iron ore.

The Strategic Partnership Behind the Deal

Crucially, the transaction also solidifies a long-term alliance. While Tata Steel takes the majority equity, the balance 49.99% stake in TPPL will continue to be held by Lloyds Metals & Energy Ltd. (LMEL).

The existing partnership between Thriveni and Lloyds Metals, driven by key promoter directors Mr. Mukesh Gupta (Chairman) and Mr. Rajesh Gupta (Managing Director) of the Lloyds Group, alongside Mr. B. Prabhakaran (also a Managing Director at LMEL), has already established significant iron ore and beneficiation capabilities.

To capitalize on this synergy, Tata Steel and LMEL have signed a Memorandum of Understanding (MoU) to jointly explore strategic collaboration in several high-growth areas, including:

• Integrated Steel Projects: Evaluating the potential development of a major 6 MTPA greenfield steel plant in resource-rich regions like Gadchiroli, Maharashtra.
• Raw Material Infrastructure: Cooperating on developing mining concessions, logistics, and slurry pipeline infrastructure to enhance efficiency for both partners.

This alliance signals a consolidation effort in the domestic steel value chain, leveraging the deep operational expertise of the Thriveni-Lloyds team in mining and beneficiation with the large-scale manufacturing and market strength of Tata Steel.

Vertical Integration to Fuel Ambitious Growth

The acquisition provides Tata Steel with immediate access to finished pellet capacity, de-risking its feedstock supply as it embarks on an ambitious domestic expansion drive. The company’s board has also given in-principle approval to several major capital projects, including a 4.8 MTPA expansion at Neelachal Ispat Nigam Ltd. (NINL) and the installation of new rolling and low-carbon steelmaking facilities.

The ₹636 crore investment is seen by analysts not just as a financial transaction, but as a strategic vertical integration move that ensures supply stability and cost control—a necessity for achieving Tata Steel’s long-term growth objectives in the increasingly competitive Indian market. The deal, which requires clearance from the Competition Commission of India (CCI), is expected to conclude within three to four months.

TPPL’s Ownership Journey

This current majority acquisition by Tata Steel finalizes a critical ownership shift that began in 2025. Before this, the ownership of Thriveni Pellets was shared between Thriveni Earthmovers Private Limited (TEMPL) and Adler Industrial Services Private Limited (AISPL), an entity whose directors include members of the Vaishnav family. The consolidation began when Lloyds Metals & Energy Ltd. (LMEL)—promoted by Mr. Mukesh Gupta and Mr. Rajesh Gupta—secured its 49.99% stake in the company. LMEL acquired this shareholding for a consideration of approximately ₹496 crore (delivered via cash and a share swap) by primarily purchasing the 49% block from Adler Industrial Services around October 21, 2025. This set up the two-party joint venture. Now, Tata Steel is acquiring the remaining majority 50.01% from the Mr. B. Prabhakaran-led TEMPL for up to ₹636 crore, thus seamlessly stepping into the established framework alongside LMEL.