Tata Steel expects to complete the merger of its seven subsidiaries with itself in the next financial year. The plans were announced earlier in September.
The completion of the merger will depend on regulatory approvals, including that from the National Company Law Tribunal (NCLT), a top official said.
However, the company has no plans to merge the recently acquired Neelachal Ispat Nigam Ltd (NINL), which it acquired last year for about Rs 12,000 crore, Tata Steel CEO & MD TV Narendran told PTI.
According to the terms of purchase with the government, a new asset has to be run as a separate legal entity for three years. Tata Steel will decide on NINL later, he said.
The seven subsidiaries to be merged with Tata Steel are Angul Energy, Tata Steel Long Products, The Tinplate Company of India, Tata Metaliks, TRF, Indian Steel & Wire Products and Tata Steel Mining and S&T Mining Company. The merger is expected to be completed in FY24.
Tata Steel will first work to complete the merger of these seven companies before it plans for merger of more subsidiary companies with itself.
In an interaction with FE last week, Narendran said Tata Steel will also continue to invest Rs 10,000-13,000 crore a year going forward as it looks to double steel production to about 40 million tonne per annum (MTPA) in India by 2030.
The steelmaker will also grow its downstream businesses in India such as tubes and wires while the firm feels the worst is over for it in Europe and India.