Noel Tata led Tata Steel is reviewing its new material ventures and considering exiting those deemed unsustainable for long-term scalability. The company which had positioned new materials as a hedge against the cyclical nature of its steel business is revising its strategy to focus on scalable opportunities. Tata Steel aims to derive 10% of its revenue from new materials by 2025. To achieve this the company has strengthened its research and development team with over 200 researchers. They have also collaborated with 40 academic and research institutes to drive innovation and development in the new materials sector. T.V. Narendran On Tata Steel ‘Review’ Plan In an interview with The Hindu Businessline T.V. Narendran Managing Director of Tata Steel emphasized the need to prioritize scalable businesses. “For a company with a size of Rs 2.50 lakh crore we need businesses that can scale up. Otherwise they remain too small to warrant the necessary attention” Narendran explained. He further noted that the company plans to evaluate the future of its new material ventures within the next three to six months. Following this evaluation a final decision will be made on which businesses to continue or exit. Key Areas Of Focus In New Materials Fibre Reinforced Polymer (FRP) Composites: Tata Steel has developed FRP products for multiple industries adopting an asset-light model through partnerships and collaborations. These FRP solutions cater to automotive Industrial and Infrastructure and railways. FRP applications include Streetlight poles Pressure vessels Pipes Modular toilets Chemical tanks Foot-over bridges Graphene VS Steel Graphene is considered as the super material of the future which is 300 times stronger than steel lightweight with diverse applications across sectors such as wearables personal technology medical devices rubber and paper industries. It also holds potential in textiles packaging and materials handling. Tata Steel R&D Efforts Tata Steel has established two advanced materials research centers one at Chennai (in collaboration with IIT Madras) and another at Bengaluru (in collaboration with the Centre for Nano and Soft Matter Sciences) These centers focus on advanced material research and applications leveraging academia-industry collaboration to enhance Tata Steel’s portfolio. The company’s decision to reevaluate its new material ventures underscores a shift toward a more focused approach. By prioritizing scalable and impactful businesses Tata Steel seeks to balance its innovation goals with its strategic growth objectives. The final decision on its new material portfolio is expected by mid-2024.