Tata Steel Ltd announced the successful amalgamation of five of its nine strategic businesses, following its long-term strategy and commitment to simplifying its business portfolio. The company stated in an exchange filing on Wednesday that following the completion of the regulatory procedures, the integration of the five operations was now underway.
Tata Steel Mining Ltd., Tata Steel Long Products Limited, S&T Mining Company Limited, The Tinplate Company of India Ltd., and Tata Metaliks Limited are the five businesses that are integrating.
Tata Steel’s massive merger
"A unique opportunity for consolidation of the downstream operations is presented by the merger of five companies with a cumulative annual turnover of ₹19,700 crore in FY23, in record time," the company stated.
The company also added that Tata Steel Mining, with a revenue of ₹5,000 crore in FY23, merged in September 2023. Tata Steel Long Products, with a turnover of ₹7,464 crore in FY23, merged in November 2023. S&T merged in December 2023, The Tinplate Company (which had an FY23 turnover of ₹3,983 crore) merged in January 2024, and Metaliks Limited (which had an FY23 turnover of ₹3,260 crore) merged on February 1st, 2024.
"This will allow for growth in value-added segments by leveraging Tata Steel's nationwide marketing and sales network. In addition to creating synergies through centralized procurement, improved facility utilization, lower logistical costs, and raw material security, the combination adds value”, according to Tata Steel.
Image Source: Tata Steel
TRF not be part of the merger
A ninth company, TRF Ltd, was also supposed to be merged, but Tata Steel stated the boards of both businesses chose not to pursue this.
The firm stated, "Tata Steel has been providing significant operational and financial support by way of placing orders and infusion of funds since the announcement of the intended merger of TRF Ltd. in September 2022."
Turnkey material handling projects are undertaken by TRF Ltd for the industrial and infrastructure sectors, including steel mills, cement, fertilizers, and mining, as well as for ports and power. At its plant in Jamshedpur, it also manufactures these kinds of material-handling devices and offers engineering supervision and design services.
Tata Steel went on to say that TRF is now experiencing a turnaround in its performance after successfully navigating a very difficult operational environment with its help.
Image Source: Mint
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