The company also said that the
integration process for three other entities is progressing well, with
completion expected by Q1 FY25.
Tata Steel amalgamation
update: Steel major Tata Steel announced the successful
completion of the amalgamation process for five key businesses, marking a
milestone in its long-term growth strategy. In a press release issued today,
February 7, Tata Steel highlighted the successful completion of the
amalgamation process for five key businesses, with integration efforts
underway.
The
company's initiative, initiated in September 2022, aimed to streamline its
business portfolio by consolidating nine strategic entities. The accomplished
mergers include:
·
Tata
Steel Mining Limited merger was effective September 1, 2023.
·
Tata
Steel Long Products Limited merger was effective November 15, 2023.
·
S&T
Mining Company Limited: This merger was effective December 1, 2023.
·
The
Tinplate Company of India Limited: With a robust annual turnover of Rs 3,983
crore in FY23, this amalgamation is effective January 15, 2024.
·
Tata
Metaliks Limited: This merger, with an annual turnover of Rs 3,260 crore in
FY23, became effective February 1, 2024.
“The merger
of five companies with a cumulative annual turnover close to Rs 19,700 crore in
FY23, in record time, presents a unique opportunity for consolidation of the
downstream operations. This will enable growth in value-added segments by
leveraging Tata Steel’s nationwide marketing and sales network,” the company
said in a statement.
The company also said that the integration process for three other entities -
Bhubaneswar Power Private Limited, Angul Energy Limited, and The Indian Steel
and Wire Products Limited - is progressing well, with completion expected by
Q1FY25, subject to regulatory approvals.
However,
regarding TRF Ltd., both companies' boards have decided not to pursue the
amalgamation process. Since the initial announcement in September 2022, Tata
Steel has provided substantial operational and financial support to TRF Ltd,
the press release said.
Tata Steel Group stands tall among the top global steel companies, boasting an
annual crude steel capacity of 35 million tonnes per annum. In the financial
year ended March 31, 2023, the group recorded a consolidated turnover of
approximately $30.3 billion, solidifying its position as a key player in the
steel industry.
The shares
of Tata Steel jumped close to 2 per cent to touch a 52-week-high of Rs 147.40
on Wednesday, February 7, 2024.