Tata Steel will merge seven subsidiaries by FY24, says CEO
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New Delhi: CEO and managing director of Tata Steel T V Narendran announced that the company will complete the merger of seven of its subsidiaries in the 2023-2024 fiscal year. The board approved a proposal to merge six subsidiaries into itself in September 2022.
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 are the seven companies being merged. He added that Tata Steel will first work to complete the merger of these seven entities before its plans for a merger of more subsidiary companies into itself.
The move is being made for greater synergies, higher efficiency, and reduced costs. "We had already announced (merger of) 6 companies earlier. (Merger of) one more Angul Energy we announced recently," said the executive to PTI.
He added that the completion of the merger depends on regulatory processes including NCLT clearances. "We are dependent on the speed at which we can go through our regulatory requirements."
Tata Steel has no immediate plans to merge the recently acquired NINL. "As per the terms of purchase with the government, the company is committed to running the new asset as a separate legal entity for three years...after that, we can decide what is best for NINL."