Unabated appetite for global growth

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: It would be little exaggeration to say that for corporate India, the year 2006-07 was the year of Tata Steel. The big bang acquisition in January this year when it beat Brazil’s CSN to clinch Anglo Dutch Corus for $12.1 billion, changed India’s corporate history forever. The company’s steely resolve to carve a global footprint was fortified as it emerged as India’s largest company and the fifth largest steel player in the world, bagging a neat 19 million tonne capacity and access to major European markets. Interestingly, the move flags off the company’s centenary celebrations.

Tata Steel did not, however, stop at that. It seems to be hungry to add more acquisitions to its kitty. A day after the Corus shareholders approved the takeover proposal by Tata Steel, the company announced three more acquisitions on March 8.

NatSteel Asia Pte Ltd, the Singapore subsidiary of Tata Steel, acquired two new steel bar rolling plants in Vietnam for $41 million (Rs 180 crore). NatSteel bought 100% stake in Structural Steel Engineering Pte Ltd and 70% stake in Vinausteel Ltd from Vietnam Industrial Investment Ltd.

The deal is likely to be completed by June 2007. In Vietnam, NatSteel Asia would take control of two rolling mills—a 2,50,000 tonne per annum bar and wire rod mill operated by SSE Steel Ltd and a 1,80,000 tonne per year reinforcing bar mill operated by Vinausteel Ltd located in Haiphong, North Vietnam as part of the agreement, the statement said. The acquisition of these two mills would allow Tata Steel to strengthen and expand its presence in Vietnam.

Besides, Tata Steel itself completed the acquisition of Rawmet Industries. Rawmet has a ferro alloys plant near Cuttack. This deal is worth Rs 101 crore.

The steel industry is poised to witness a surge in demand and Tata Steel wants to be fully geared to tap the growth. Hence, the company has chalked out plans to achieve a capacity of 100 million tonne by 2015. Of the 100 million tonne, Tata Steel is planning a 50-50 balance between greenfield facilities and acquisitions.

The company has lined up a series of greenfield projects in the country and outside. These projects will add 6 million tonne in Orissa, 12 million tonne in Jharkhand and 5 million tonne in Chhattisgarh.