Tata Steel is expecting to complete the merger of its seven subsidiaries with itself in the next financial year but the company has no plans to merge the Neelachal Ispat Nigam Ltd (NINL), which it acquired last year for about Rs 12,000 crore.
The seven subsidiaries to be merged with Tata Steel are 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. The merger is expected to be completed in FY24.
However, the completion of the merger will depend on regulatory approvals, including that from the National Company Law Tribunal (NCLT).
The reason of not merging the recently acquired Neelachal Ispat Nigam Ltd. is that according to the terms of purchase with the government, a new asset has to be run as a separate legal entity for three years. Tata Steel will decide on NINL later, said Tata Steel CEO & MD TV Narendran.
He said that Tata Steel will first work to complete the merger of these seven companies before it plans for merger of more subsidiary companies with itself. He also announced that Tata Steel will continue to invest Rs 10,000-13,000 crore a year going forward as it looks to double steel production to about 40 million tonne per annum (MTPA) in India by 2030.
