After successful acquisition of Bhushan Steel in the first landmark resolution under the Insolvency and Bankruptcy Code (IBC), Tata Steel is looking at two big plans in coming years.
After successful acquisition of Bhushan Steel in the first landmark resolution under the Insolvency and Bankruptcy Code (IBC), Tata Steel is looking at two big plans in coming years. The company recently announced that it will acquire the steel business of Usha Martin Limited (UML), in which it may invest Rs 300-400 crore, a report has said. Meanwhile, Tata Steel Processing and Distribution will be setting up a manufacturing unit in Odisha at an investment of Rs 92 crore.
On Tata Steel’s acquisition of UML, India Ratings said that TSL may be incurring an additional Rs 300-400 crore of capex in FY20 to further improve the EBITDA/tonne of the division. UML was one the largest debt resolution case outside the NCLT. Tata Steel will acquire the firm’s steel and wire rope business for up to Rs 4,300-4,700 crore in a slump sale.
The company is also gearing up to establish a manufacturing unit in Odisha as the company’s Managing Director Abraham Stephanos formally received the investment approval during Odisha Investors Meet, reported PTI. Tata Steel had proposed setting up a manufacturing unit of steel doors and windows with a capacity of 1.80 units per year at Kalinganagar industrial complex, Jajpur.
Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 27.5 million tonnes per annum (MTPA) as on March 31, 2018.
Tata Steel acquired bankrupt yet prizes Bhushan Steel under the IBC and is looking to acquire Bhushan Power and Steel, for which other companies are also in the fray.