Tata Steel and TRF Boards decide against pursuance of amalgamation

Tata Steel completes amalgamation of five companies

Mail News Service

Jamshedpur, Feb 7:  In line with its long-term strategy and commitment to simplify the business portfolio, Tata Steel had, in September 2022 and two subsequent dates, announced its intent to amalgamate nine strategic businesses. The Company has successfully amalgamated five of these businesses after duly completing the regulatory processes and the integration is underway. The five companies include  Tata Steel Mining Limited with an annual turnover of Rs 5,000 cr in FY23 (merged effective September 1, 2023),  Tata Steel Long Products Limited with an annual turnover of Rs 7,464 cr in FY23 (merged effective November 15, 2023),  S&T Mining Company Limited (merged effective December 1, 2023),  The Tinplate Company of India Limited with an annual turnover of Rs 3,983 cr in FY23 (merged effective January 15, 2024) and  Tata Metaliks Limited with an annual turnover of Rs 3,260 cr in FY23 (merged effective February 1, 2024).

The merger of five companies with a cumulative annual turnover of Rs 19,700 cr in FY23, in record time, presented a unique opportunity for consolidation of the downstream operations. This would enable growth in value added segments by leveraging Tata Steel’s nationwide marketing and sales network. The amalgamation was value-accretive and would also drive synergies through raw material security, centralised procurement, optimisation of inventories, reduced logistics costs, and better facility utilisation.

As for the three other companies – Bhubaneswar Power Private Limited (wholly owned subsidiary of Tata Steel), Angul Energy Limited (Tata Steel shareholding – 99.99%) and The Indian Steel and Wire Products Limited (Tata Steel shareholding – 98.15%), the merger process was in advanced stages with the respective jurisdictional company law tribunals and was expected to be completed by Q1FY25, subject to regulatory approvals.

In the case of TRF Ltd., the Boards of both the companies have decided not to pursue the amalgamation process.

Since the announcement of the intended merger of TRF Ltd. in September 2022, Tata Steel had been providing significant operational and financial support by way of placement of orders and infusion of funds. With the active support from Tata Steel, TRF had successfully navigated a highly challenging operating environment, witnessing a turnaround in its business performance. Tata Steel would continue with its simplification journey and leverage relevant opportunities in future.