comScore
Active Stocks
Wed Sep 27 2023 15:59:55
  1. Tata Steel share price
  2. 128.15 -0.54%
  1. HDFC Bank share price
  2. 1,527.2 -0.68%
  1. Tata Motors share price
  2. 620.4 0.1%
  1. NTPC share price
  2. 239.35 -0.35%
  1. Infosys share price
  2. 1,467.55 0.51%
Business News/ Companies / People/  Tata Steel merger will simplify management, help focus on business : CFO Koushik Chatterjee
Back

Tata Steel merger will simplify management, help focus on business : CFO Koushik Chatterjee

Chief Finance Officer of Tata Steel Koushik Chatterjee has said that merger of seven entities with Tata Steel will simplify management and help the company in focusing business

Tata Steel has announced the merger of seven entities.Premium
Tata Steel has announced the merger of seven entities.

Merger of seven entities with Tata Steel will allow simplification of management and help with sharper focus on the business, Koushik Chatterjee, CFO of the steel giant, said.

On Friday, the board of Tata Steel approved the amalgamation of its seven subsidiaries -- Tata Steel Long Products, Tata Metaliks, The Tinplate Company of Ihas ndia, TRF Limited, Indian Steel & Wire Products, Tata Steel Mining and S&T Mining -- into itself.

Also Read: Tata Steel to raise 2,000 cr through NCDs

"We have been driving simplification across Tata Steel for some time. The objective is to consolidate the subsidiary businesses within Tata Steel to drive simplification of management and also have a sharper focus on the business," Chatterjee told PTI.

Also Read: Tata Steel to implode obsolete unit at Jamshedpur on 4 September

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

In 2018, Tata Steel through its wholly-owned subsidiary Bamnipal Steel Ltd (BNPL) completed the acquisition of controlling stake of 72.65 per cent in Bhushan Steel Ltd (BSL).

Tata Steel Ltd had won the bid to acquire debt-laden Bhushan Steel in an auction under the insolvency process.

On the merger, the company official further said: "The net present value of all synergies will be over 1,000 crore, which is a material value unlocking potential. This covers benefits on cost takeouts, leveraging the synergies on procurement, commercial and financing synergies."

All the businesses of the amalgamating companies have a good future. These businesses are part of Tata Steel's enterprise strategy and the company has much more flexibility to grow some of these businesses faster, he said.

According to Tata Steel, the merger is also part of its continuing journey to simplify the group 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 under liquidation).

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Updated: 25 Sep 2022, 01:36 PM IST
Next Story
Recommended For You
Switch to the Mint app for fast and personalized news - Get App