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Business News/ News / India/  Tata Steel to merge 7 subsidiaries by FY24, says CEO T V Narendran
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Tata Steel to merge 7 subsidiaries by FY24, says CEO T V Narendran

The seven subsidiaries to be merged with the company are Angul Energy, Tata Steel Long Products (TSPL), The Tinplate Company of India, Tata Metaliks, TRF, Indian Steel & Wire Products, and Tata Steel Mining and S&T Mining Company.

Tata Steel MD and CEO T.V. Narendran. Premium
Tata Steel MD and CEO T.V. Narendran.

Tata Steel CEO and managing director TV Narendran said that the merger of 7 subsidiary companies with Tata Steel is expected to be completed in 2023-24 fiscal year, news agency PTI has reported.

The seven subsidiaries to be merged with the company are Angul Energy, Tata Steel Long Products (TSPL), The Tinplate Company of India, Tata Metaliks, TRF, Indian Steel & Wire Products, and Tata Steel Mining and S&T Mining Company.

Earlier in September 2022, the board had approved a proposal to merge six of its subsidiaries into itself for greater synergies, higher efficiency and reduce costs.

Replying to a question on the timeline for the merger, Narendran told PTI that, "We had already announced (merger of) 6 companies earlier. (Merger of) one more Angul Energy we announced recently."

However, the CEO added that, the completion of the merger depends on the regulatory processes including NCLT clearances, post which the process is expected to be completed in the next financial year.

"We are dependent on the speed at which we can go through our regulatory requirements," he told PTI.

When asked about plans of merging recently acquired NINL into Tata Steel, the CEO said there are no such immediate plans.

"As per the terms of purchase with the government, the company is committed to run the new asset as a separate legal entity for three years...after that we can decide what is best for NINL," he said.

Narendran also said Tata Steel will first work to complete the merger of these 7 entities before it plans for merger of more subsidiary companies into self.

Meanwhile, the company reported a surprise consolidated net loss of 2,224 crore for the third quarter ending 31 December, 2022 (Q3FY23). This is a decline of 76 percent from 9,572 crore profit posted in the corresponding quarter of last year. The steel production company's revenue from operations declined 6 percent to 57,083.56 crore for the period under review as as compared to 60,783 crore in the year-ago period.

Earlier in an interview with Mint, the CEO said that pension adjustments, the need to build stocks in the Netherlands for a maintenance shutdown, and higher coal prices were the three key reasons for the worse-than-expected financial numbers for Tata Steel in the December quarter. Narendran added that said the worst is over for Europe and India, adding that high steel prices will sustain in the short to medium term.

(With inputs from PTI)

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Published: 12 Feb 2023, 11:53 AM IST
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