The proposed merger of Tata Material Handling Systems Ltd (TMHSL) with TRF Ltd, both of which are members of the Tata group of companies, has been indefinitely deferred. TMHSL is being continued as an independent company primarily due to its desire to maintain the strong brand image that it enjoys in the material handling equipment including port terminal handling facilities.
The proposal of merging THMSL with TRF was placed before shareholders at the companys annual general meeting in 1995-96. It was felt at the time that the merger would be advantageous in bringing about a synergy in the operations of both companies.
THMSL was formerly known as Tata Mann GHH Ltd, a joint venture company between the Tata group flagship, Tata Steel, and Mann GHH of Germany. The change in name was effected in December 1995, and the technology licence agreement with Mann GHH was also terminated by mutual consent with effect from May 1996.
TRF Ltd, also promoted by Tata Steel in association with the Associated Cement Companies Ltd, specialises in the design and manufacture of bulk material handling systems and caters to the needs of most core sector industries.
The company also has foreign equity participation by Hewitt Robins Inc of the United States and the General Electric Company Plc, UK.
However, in spite of the merger proposal being deferred, the last financial year has seen the development of considerable synergy in operations between the two companies.
Both companies feel a vital need to gear up with new capabilities and improved competitive edge to grasp the opportunities which are slated to open up with the development of the infrastructure and power sectors.
The underlying focus would be to bring about a qualitative improvement in the companys responsiveness to customers needs.
According to TRFs annual report for 1996-97, the company has been able to post a 66 per cent increase in net profit during the previous fiscal despite poor overall growth mainly due to its diversification into the manufacture of stamp charging pushing machines for steel plants.
