Tata Steel Board Decides Not to Merge TRF Ltd as Company Sees Turnaround

Tata Steel Board Decides Not to Merge TRF Ltd as Company Sees Turnaround
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Published By: Mohammad Haris

Last Updated: February 07, 2024, 13:56 IST

Tata Steel Board Decides Not to Merge TRF Ltd as Company Sees Turnaround.

Tata Steel Board Decides Not to Merge TRF Ltd as Company Sees Turnaround.

Tata Steel says the boards of both Tata Steel and TRF have decided not to pursue the amalgamation process

Tata Steel on Wednesday said its board has decided not to pursue the amalgamation of TRF Ltd, as the associate company is witnessing a turnaround in its business performance. Tata Steel had earlier announced the amalgamation of nine of its strategic businesses including Tata Steel Long Products, Tinplate Company of India, Tata Metaliks, TRF, The Indian Steel & Wire Products, Tata Steel Mining Ltd, S&T Mining Company.

In a statement, Tata Steel said “the boards of both the companies have decided not to pursue the amalgamation process. With the active support from Tata Steel, TRF has successfully navigated a highly challenging operating environment, witnessing a turnaround in its business performance.”

Since the announcement of the intended merger, Tata Steel has been providing significant operational and financial support by way of placement of orders and infusion of funds. Tata Steel further said it has successfully amalgamated five businesses after duly completing the regulatory processes and the integration is underway.

These companies include Tata Steel Mining Ltd with an annual turnover of Rs 5,000 crore in FY23, merged effective September 1, 2023 and Tata Steel Long Products Ltd with an annual turnover of Rs 7,464 crore in FY23, merged effective November 15, 2023. While S&T Mining Company Ltd merged with effect from December 1, 2023 and The Tinplate Company of India Ltd with an annual turnover of Rs 3,983 crore in FY23, merged effective January 15, 2024.

Besides, Tata Metaliks Ltd with an annual turnover of Rs 3,260 crore in FY23, merged effective February 1, 2024. The merger of five companies with a cumulative annual turnover of around Rs 19,700 crore in FY23, in record time, presents a unique opportunity for consolidation of the downstream operations, Tata Steel said.

This will enable growth in value-added segments by leveraging Tata Steel’s nationwide marketing and sales network. The amalgamation is value-accretive and will also drive synergies through raw material security, centralised procurement, optimisation of inventories, reduced logistics costs, and better facility utilisation, the company said.

The company further said the merger process with regards to Bhubaneswar Power Private Ltd (wholly-owned subsidiary of Tata Steel), Angul Energy Ltd (Tata Steel shareholding – 99.99 per cent) and The Indian Steel and Wire Products Ltd (Tata Steel shareholding – 98.15 per cent), is in advanced stages with the respective jurisdictional company law tribunals and is expected to be completed by Q1FY25, subject to regulatory approvals.

As per Tata Steel, TRF Ltd is its associate company in the business of undertaking turnkey projects of material handling for the infrastructure sector such as power and ports and industrial sector such as steel plants, cement, fertilisers and mining.

TRF is also engaged in production of such material handling equipment at its manufacturing facility at Jamshedpur.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)

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