Before it aims to merge more of its subsidiary firms with itself, Tata Steel will first endeavor to complete the merger of these seven businesses. In the next fiscal year, they intend to complete the merger of its seven companies. At the beginning of September, they reveal their intentions.
According to a top official, the merger’s conclusion would be subject to regulatory clearances, including those from the National Company Law Tribunal (NCLT).
Tata Steel CEO & MD TV Narendran told that the business has no intentions to integrate the newly acquired Neelachal Ispat Nigam Ltd (NINL), which it purchased last year for roughly Rs 12,000 crore.
What do officials say?
A new asset must be operating for three years as a distinct legal business in accordance with the conditions of the purchase agreement with the government. According to him, Tata would decide on NINL later.
The completion of the merger depends on the regulatory processes, including NCLT clearances, post which the process expects that they completes by the next financial year, the CEO said.
Angul Energy, Tata Steel Long Products, The Tinplate Company of India, Tata Metaliks, TRF, Indian Steel & Wire Products, Tata Steel Mining, and S&T Mining Company are the seven businesses that will integrate with Tata Steel. In FY24, the merger is anticipated to be finished.
Before it aims to merge more of its subsidiary firms with itself, Tata Steel will first endeavor to complete the merger of these seven businesses.
It would continue to invest between Rs 10,000 and Rs 13,000 crore year going ahead, according to Narendran, who spoke with FE last week. They aim to increase output in India to around 40 million tonnes per annum (MTPA) by 2030.
While the company believes the worst is over for it in Europe and India, the steelmaker will also expand its downstream operations there, such as the tubes and wires.
READ ALSO: Russian oil production hiked up by 1% in February
