Tata Steel eyes more acquisitions

Kolkata, July 15: Fresh from purchasing ball bearings units of Antifriction Bearing Corporation, Steel major Tata Steel is looking for acquisition opportunities in selected steel and allied business fields.
“We are endeavouring to identify acquisition opportunities in selected steel and allied business fields, and diversification into promising areas that will provide synergy to existing business,” Tata Steel officials said.

The Antifriction Bearing Corporation’s ball bearings unit was purchased with a view to upgrade and expand its own Bearings Unit at Kharagpur.

The acquired plant had a capacity to produce 10 million numbers of bearings, thereby enhancing the divisions capacity from 15 to 25 million numbers, the officials said.

They said the company plans to enhance its financial position further by restricting capital expenditure to cover only essential balancing facilities, replacements and renewals.

Incidentally, Tata Steel Chairman Ratan Tata had said that the company was geared up to face the global challenges, both within and outside India, following initiatives taken in the past with respect to modernisation, focus on high-end products substantial reduction in manufacturing costs and enhanced customer orientation.

The company had spend about Rs 12,000 crore since 1980 in acquiring equipment and technology in four phases of modernisation.
The officials said Tata Steel expects that steel prices would show some improvement as production cutbacks were effected to correct the over-supply situation.

“However, price recovery will be slow and the steel pricing structure will be highly competitive,” they said.

-- PTI