Tata Steel earns Rs 8,500 crore through by-product utilisation

Every by-product is a resource, not waste, says Dipankar Dasgupta

Circular economy is key to future growth: IBMD Executive-in-Charge

Jamshedpur, April 9: Tata Steel’s Industrial By-Products Management Division (IBMD) is playing a pivotal role in driving sustainability, circular economy practices, and decarbonisation efforts within the company, said Dipankar Dasgupta, Executive-in-Charge, IBMD, during an awareness session held at the CFE Auditorium on Thursday.

Addressing the media, Dasgupta provided a comprehensive overview of Tata Steel’s sustainability framework and highlighted how IBMD is contributing to the company’s long-term environmental and business goals. He emphasised that sustainability at Tata Steel is not just a policy but a core business philosophy anchored on three key pillars — Planet, People, and Profit.

Dasgupta explained that Tata Steel’s sustainability framework is structured around four main pillars: Environment, Health and Safety, Community, and Governance. These align closely with globally accepted ESG (Environmental, Social, and Governance) principles.

He noted that while ESG is widely used across industries, Tata Steel has developed a more cohesive and integrated sustainability policy that goes beyond compliance and focuses on long-term value creation.

“The idea is to embed sustainability into every aspect of operations, ensuring that environmental responsibility, social well-being, and strong governance practices are maintained,” he said.

A key highlight of the session was IBMD’s role in implementing circular economy principles. Dasgupta said that by-products generated during steel manufacturing are no longer treated as waste but are processed, refined, and reused as valuable materials.

“Whatever is generated as by-product is brought back into the system after processing. This not only reduces waste but also creates additional revenue streams,” he explained.

Currently, IBMD manages around 25 different product categories derived from by-products. These materials are used in various industries, including construction and cement manufacturing.

In the last financial year, Tata Steel generated nearly 16 million tonnes of by-products, all of which were systematically processed and utilised, significantly reducing environmental impact.

IBMD contributes substantially to Tata Steel’s revenue through its by-product management operations. Dasgupta revealed that the division generates approximately Rs 8,500 crore annually.

A large portion of this comes from internal value creation, where processed materials are reused within Tata Steel’s own operations, particularly in metallic recovery and recycling processes.

“This internal recycling reduces dependency on raw materials and enhances overall efficiency,” he added.

Dasgupta also spoke extensively about Tata Steel’s decarbonisation roadmap, acknowledging that the steel sector is one of the most challenging industries to decarbonise due to its high carbon footprint.

As part of its strategy, Tata Steel has invested in new technologies, including Electric Arc Furnaces (EAF), which significantly reduce carbon emissions compared to traditional blast furnace methods.

He said that the company is actively working to lower its carbon footprint, which currently stands at around 2.2 tonnes of CO₂ per tonne of steel produced, through a combination of technological upgrades, energy efficiency, and increased use of green electricity.

“Decarbonisation is not a one-step process. It requires a combination of multiple strategies, including process innovation and renewable energy adoption,” Dasgupta said.

The company is also focusing on nature-based solutions, including water conservation, biodiversity preservation, and responsible use of natural resources.

Dasgupta highlighted that Tata Steel has aligned its sustainability targets with global and national goals, including India’s commitment to achieving net-zero emissions by 2070.

He noted that the company has set intermediate targets for 2025 and 2030, with a long-term vision extending to 2045, by which most Tata Group companies aim to achieve net-zero emissions.

Product sustainability is another key focus area for IBMD. Dasgupta stressed the importance of developing sustainable products that reduce environmental impact while maintaining quality and performance.

One notable innovation is the use of processed slag in construction. Materials such as LD slag and blast furnace slag are being used as substitutes for natural aggregates in road construction and concrete production.

These products not only reduce the need for natural resources like sand and gravel but also offer improved strength and durability.

IBMD’s products are already being used in large-scale infrastructure projects across India. Dasgupta said that Tata Steel has contributed to the construction of over 150 kilometres of roads using its by-product-based materials.

These materials are being used in various layers of road construction, including sub-base and base layers, providing a cost-effective and sustainable alternative to traditional materials.

In addition, slag-based concrete has demonstrated higher strength levels, achieving grades of M50 and M60 while reducing costs by 15 to 30 per cent.

The company is also supplying materials for major infrastructure projects, including bridges and elevated corridors in different parts of the country.

Beyond environmental benefits, IBMD is also making a significant social impact by generating employment and supporting local communities.

Dasgupta said that the division employs more than 4,000 people, including direct employees, contractual workers, and support staff.

In addition, IBMD is promoting the creation of small enterprises by encouraging local entrepreneurs to participate in manufacturing and supply chains related to by-product utilisation.

“This creates livelihood opportunities and supports economic development in the regions where we operate,” he said.

To ensure quality and reliability, Tata Steel supplies its by-product-based materials directly to government agencies and construction companies, eliminating intermediaries.

Dasgupta explained that maintaining strict quality control is essential, as any variation in material composition could affect the structural integrity of construction projects.

“All our products undergo extensive testing in laboratories to meet national and international standards,” he said.

IBMD has also achieved significant milestones in product certification. Its processed materials have received certifications that validate their safety and performance for use in construction and other applications.

The company is expanding its market reach by supplying these materials to both institutional buyers and retail customers.

Dasgupta noted that the demand for sustainable construction materials is growing, driven by increasing awareness and regulatory support.

IBMD’s initiatives are part of a broader sustainability drive across the Tata Group, with collaboration among various group companies in India and abroad, including operations in Europe and Southeast Asia.

The group is collectively working towards embracing sustainability, focusing on climate change mitigation, circular economy practices, and resource conservation.

Looking ahead, Dasgupta expressed confidence that IBMD will continue to play a crucial role in Tata Steel’s sustainability journey.

He emphasised that the division’s focus will remain on innovation, efficiency, and expanding the use of by-products in new applications.

“Our goal is to ensure that every by-product is utilised effectively, contributing to both environmental sustainability and business growth,” he said.

Akhliesh Mishra, Chief Operations and New Initiatives, IBMD, Tata Steel and Amit Ranjan , Chief Marketing and Sales, IBMD, Tata Steel were also present.