A separate division - Retail Initiatives - has been set up for this first-of-its-kind exercise, aimed at bringing steel closer to the consumers' daily lives.
The company has already located the real estate property and the "destination store" would come up on the EM bypass connector.
When contacted, Sumit Ray, chief of Retail Initiatives at Tata Steel, refused to comment and said the company would make a formal announcement at an appropriate time.
Kolkata will be the first city in which such a business to consumer (B2C) effort will be piloted. If the project succeeds, the model would be rolled out in other parts of the country.
The multi-brand outlet would retail products like furniture, home appliances like kitchen utensils and other home improvement steel based products and even gardening equipment like fences.
Trade sources said, essentially the store would have steel products relating to home maintenance, home decor and home construction. The main objective of the project was to make steel more relevant and popular as a category.
As part of this effort, Retail Initiatives had called for an agency pitch last month to device a communication strategy for the proposed chain of retail outlets.
The account was won by Ogilvy and Mather Kolkata in a pitch closely contested amongst agencies like existing ones JWT and Rediffusion DY&R, and others like 141India, Bates, Lowe and Grey Worldwide.
"This is the first initiative of its kind as steel is a category which is usually restricted at business to business (B2B) models so, we are looking forward to this challenge in developing communication which will increase the consumer's awareness about steel based products thereby increasing their involvement with the category," said Sharmista Dev, general manager and head of office, O&M Kolkata.
The destination store would house brands other than Tata Steel's. Tata Steel was the first company in the world to brand cold rolled strips. Tata Steelium, which is the name of the brand, was launched in 2003.
