Merging entities with Tata Steel will simplify management and help focus on business: CFO


By PTI IST (Released)

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Tata Steel Chief Financial Officer Koushik Chatterjee said: “We have been promoting simplification within Tata Steel for some time. The aim is to consolidate subsidiary businesses within Tata Steel to simplify management and allow us to focus more on the business,”

Merging seven entities with Tata Steel will simplify management and help focus more on the business, said Koushik Chatterjee, chief financial officer (CFO) of the steel giant.

On Friday, Tata Steel’s board approved the merger of its seven subsidiaries — Tata Steel Long Products, Tata Metaliks, The Tinplate Company of India, TRF Limited, Indian Steel & Wire Products, Tata Steel Mining and S&T Mining – – in himself.

“We have been carrying out simplification within Tata Steel for some time. The aim is to consolidate the activities of the subsidiaries within Tata Steel in order to simplify management and focus more on the business,” Chatterjee told PTI.

After successfully integrating Bhushan Steel, which was much bigger and more complex, it was the natural next step, said the official who is also executive director of Tata Steel.

In 2018, Tata Steel, through its wholly owned subsidiary Bamnipal Steel Ltd (BNPL), completed the acquisition of a 72.65% majority stake in Bhushan Steel Ltd (BSL). Tata Steel Ltd had won the bid to acquire debt-laden Bhushan Steel at an auction as part of the insolvency proceedings.

About the merger, the head of the company further said, “The net present value of all synergies will be over Rs 1,000 crore, representing significant value unlocking potential. costs, leveraging synergies on procurement, commercial and financing synergies.”

All the businesses of the merging companies have a bright future. These activities are part of Tata Steel’s corporate strategy and the company has much more flexibility to develop some of these activities more rapidly, he said. According to Tata Steel, the merger is also part of its continued journey to simplify the group’s holding structure.

Since 2019, Tata Steel has reduced 116 associated entities (72 subsidiaries have ceased to exist, 20 associates and joint ventures have been eliminated, and 24 companies are currently in liquidation).


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