India's Tata Steel limited has decided to merge its wholly-owned subsidiary Nilachal Ispat Nigam limited (NINL) with itself to consolidate its long steel operations into a single entity, the company said in a statement on Wednesday, March 18.
Tata Steel limited acquired the assets of NINL limited in 2012 under the government's disinvestment program with a bid of $1.31 billion.
Following the takeover, Tata Steel limited announced plans to increase the capacity of the NINL plant, located in the eastern state of Odisha, to 4.8 million tons from 0.98 million tons at the time of acquisition.
The company said the merger will simplify the structure, improve management efficiency, ensure more efficient use of facilities, improve raw material safety, rationalize logistics costs and lead to faster delivery of projects in pipeline.
With the acquisition of the NINL steel complex, which is located near Tata Steel's Kalinganagar steel plant in Odisha, the latter has also gained access to an iron ore mine having 100 million tonnes of reserves.
The Tata Steel Board of Directors has also approved a $2 billion investment in T Steel Holdings Pte Ltd (TSHP), a wholly owned foreign owned company. subsidiary of a company registered in Singapore. TSHP's principal business includes ownership of shares in indirect foreign subsidiaries of Tata Steel limited and other entities.
Tata Steel limited directs its investments
