Saturday , June 19 2021

These assets: Tata Steel is open to more acquisitions



While Tata Steel follows the NCLT law, it also develops stressful assets that are willing to close off-court businesses such as Usha Martin.

Tata Steel has been open to the continued acquisition of stressful assets due to the growing demand for steel on the market. There is consolidation in the steel industry, which is currently taking place after a downward cycle of the industry, as a result of which many steel plants were either forced to close down or work with less capacity. Those that worked at a lower level had to face huge losses for which there are opportunities to buy assets as a going concern.

While Tata Steel follows the NCLT law, it also develops stressful assets that are willing to close off-court businesses such as Usha Martin.

"We expect a capacity of at least 30 million tons in India by 2025 due to the assets we have at present," said Ananda Sen, President of Tata Steel (India), adding: "We are now 18.5 million tons of expansion and new capacities, we expect to have a capacity of 30 million tonnes in India by 2025 ".

This projection is based on existing assets and projects that Tata Steel currently holds. The company has recently taken over the steel companies Bhushan Steel and Usha Martin, which have a total nominal capacity of 7.1 million tonnes. Kalinganagar's capacity would reach 8 million tons after the second expansion phase and Jamshedpur's capacity at 13.5 million tons should have Tata Steel's total capacity at 28.6 million tons by 2025, Sen. said.

Bhusan Steel has a capacity of 5.6 mt and Usha Martin has 1.5 mt. Tata Steel has already announced fresh investments for both plants, but Sen did not want to publish any details. Bushan Steel is expected to reach 4 to 4.2 million tonnes in the 4th quarter, from 3.5 million tonnes to the last fiscal yield. The additional raw material is delivered to the plant to increase production. Iron ore from the Tata Steel mines was started by delivery to the plant in Bhusan, which implies improved production.

However, Tata Steel plans to invest an estimated Rs 1000 crore to achieve 100% capacity utilization. "Tata Steel is currently evaluating investment requirements, and it could be something between Rs 500 crore and Rs 1000 crore," said Sen.

Taking into account the European operation, Tata Steel's total capacity is currently 27 mt.

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