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Updated February 7th, 2024 at 11:22 IST

Tata Steel completes amalgamation of 5 businesses with cumulative turnover close to Rs 19,700 crore

The company also said that the integration process for three other entities is progressing well, with completion expected by Q1 FY25.

Business Desk
Tata Steel job cut
Tata Steel amalgamation update | Image:Tata Steel
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Tata Steel amalgamation update: Steel major Tata Steel announced the successful completion of the amalgamation process for five key businesses, marking a milestone in its long-term growth strategy. In a press release issued today, February 7, Tata Steel highlighted the successful completion of the amalgamation process for five key businesses, with integration efforts underway.

The company's initiative, initiated in September 2022, aimed to streamline its business portfolio by consolidating nine strategic entities. The accomplished mergers include:

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  • Tata Steel Mining Limited merger was effective September 1, 2023.
  • Tata Steel Long Products Limited merger was effective November 15, 2023.
  • S&T Mining Company Limited: This merger was effective December 1, 2023.
  • The Tinplate Company of India Limited: With a robust annual turnover of Rs 3,983 crore in FY23, this amalgamation is effective January 15, 2024.
  • Tata Metaliks Limited: This merger, with an annual turnover of Rs 3,260 crore in FY23, became effective February 1, 2024.

“The merger of five companies with a cumulative annual turnover close to Rs 19,700 crore in FY23, in record time, presents a unique opportunity for consolidation of the downstream operations. This will enable growth in value-added segments by leveraging Tata Steel’s nationwide marketing and sales network,” the company said in a statement.

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The company also said that the integration process for three other entities - Bhubaneswar Power Private Limited, Angul Energy Limited, and The Indian Steel and Wire Products Limited - is progressing well, with completion expected by Q1FY25, subject to regulatory approvals.

However, regarding TRF Ltd., both companies' boards have decided not to pursue the amalgamation process. Since the initial announcement in September 2022, Tata Steel has provided substantial operational and financial support to TRF Ltd, the press release said.

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Tata Steel Group stands tall among the top global steel companies, boasting an annual crude steel capacity of 35 million tonnes per annum. In the financial year ended March 31, 2023, the group recorded a consolidated turnover of approximately $30.3 billion, solidifying its position as a key player in the steel industry.

The shares of Tata Steel jumped close to 2 per cent to touch a 52-week-high of Rs 147.40 on Wednesday, February 7, 2024.

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Published February 7th, 2024 at 11:22 IST

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