Tata Steel anticipates completing the merger of its seven subsidiaries with itself in the coming fiscal year. The plans were announced earlier this month. According to a top official, the merger’s completion will be contingent on regulatory approvals, including those from the National Company Law Tribunal (NCLT). However, Tata Steel CEO & MD TV Narendran told PTI that the company has no plans to merge the recently acquired Neelachal Ispat Nigam Ltd (NINL), which it purchased last year for approximately Rs 12,000 crore.
A new asset must be run as a separate legal entity for three years, according to the terms of purchase with the government. He stated that Tata Steel will make a decision on NINL later. Angul Energy, Tata Steel Long Products, The Tinplate Company of India, Tata Metaliks, TRF, Indian Steel & Wire Products, and Tata Steel Mining and S&T Mining Company are the seven subsidiaries that will be merged with Tata Steel. The merger is scheduled to be completed in fiscal year 24.
In an interview with FE last week, Narendran stated that Tata Steel will continue to invest Rs 10,000-13,000 crore per year in order to double steel production in India to about 40 million tonnes per annum (MTPA) by 2030. While the steelmaker believes the worst is over in Europe and India, it will expand its downstream businesses such as tubes and wires. Tata Steel will first work to complete the merger of these seven companies before considering the merger of additional subsidiary companies.