Tata Steel update on scheme of amalgamation

Board of Tata Steel and TRF decide to terminate amalgamation process

In line with its long-term strategy and commitment to simplify the business portfolio, Tata Steel had, in September 2022 and two subsequent dates, announced its intent to amalgamate nine strategic businesses.

The Company has successfully amalgamated five of these businesses after duly completing the regulatory processes and the integration is underway. These companies include:

Tata Steel Mining with an annual turnover of Rs 5,000 cr in FY23, merged effective 01 September 2023

Tata Steel Long Products with an annual turnover of Rs 7,464 cr in FY23, merged effective 15 November 2023

S&T Mining Company merged effective 01 December 2023

The Tinplate Company of India with an annual turnover of Rs 3,983 cr in FY23, merged effective 15 January 2024

Tata Metaliks with an annual turnover of Rs 3,260 cr in FY23, merged effective 01 February 2024

The merger of five companies with a cumulative annual turnover of ~Rs 19,700 cr 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 amalgamation is value-accretive and will also drive synergies through raw material security, centralised procurement, optimisation of inventories, reduced logistics costs, and better facility utilisation.

For the three other companies - Bhubaneswar Power (wholly owned subsidiary of Tata Steel), Angul Energy (Tata Steel shareholding - 99.99%) and The Indian Steel and Wire Products (Tata Steel shareholding - 98.15%), the merger process is in advanced stages with the respective jurisdictional company law tribunals and is expected to be completed by Q1FY25, subject to regulatory approvals.

In the case of TRF, the Boards of both the companies have decided not to pursue the amalgamation process. Since the announcement of the intended merger of TRF in September 2022, Tata Steel has been providing significant operational and financial support by way of placement of orders and infusion of funds. With the active support from Tata Steel, TRF has successfully navigated a highly challenging operating environment, witnessing a turnaround in its business performance.

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