Tata Steel has entered into a pact to acquire a majority stake in Odisha-based Thriveni Pellets Pvt Ltd (TPPL), according to a company statement.
The acquisition is set to bolster Tata Steel’s supply chain, especially in the crucial sector of raw materials.
TPPL owns 100 per cent stake in Brahmani River Pellet Ltd (BRPL), which operates a 4 million tonnes per annum pellet plant in Jajpur, Odisha along with a 212 km slurry pipeline.
“Tata Steel has also signed a definitive agreement to acquire a 50.01 per cent stake in Thriveni Pellets Pvt Ltd,” the statement said.
Lloyds Metal’s stake
The balance 49.99 per cent stake in TPPL is held by Lloyds Metals.
Lloyds Metals said in the statement that this pact is, however, subject to regulatory clearances.
Lloyds Metals and Energy Ltd said it has entered into a pact with Tata Steel Ltd to explore strategic partnership in raw material mining, logistics, pellet and steel making.
Utilization plan
The proposed partnership aims at utilising the natural synergy in the business operations between Lloyds Metals and Tata Steel.
The MoU sets out a framework for both companies to evaluate potential cooperation in greenfield steel making projects, iron ore mining, slurry pipeline infrastructure, pellet making in iron ore rich states, direct reduced iron production and exports of value-added low carbon iron and steel products among other associated areas of mutual interest.
The objective is to utilise the complementary strengths of Tata Steel and Lloyds Metals to promote sustainable and efficient growth in the domestic steel sector, it said.