Seven Tata Group metal companies to merge with Tata Steel; all you need to know

Tata Group approved the amalgamation of all its metal companies into Tata Steel. The companies to be merged into Tata Steel are Tata Steel Long Products (TSLP), Tinplate Company of India Limited (TCIL), Tata Metaliks Limited (TML), TRF Limited (TRF), Indian Steel and Wire Products Limited (ISWP), Tata Steel Mining Limited (TSML) and S&T Mining Company Limited. 

The scheme of amalgamation is subject to approval from majority shareholders of transferor and transferee companies, competent authorities as defined in each scheme, Securities and Exchange Board of India (SEBI) and stock exchanges apart from other regulatory and government sanctions, as per a recent Tata Steel filing. 

This amalgamation will lead to operational integration and better facility utilisation, improvement in customer satisfaction, services, achieving greater market presence in long products segment, centralised procurement and inventory management, efficiency in working capital and cash flow management, improving raw material security, faster execution of projects, simplified structure and management facility, sharing best practices in sustainability, safety, health and environment and rationalisation of logistics costs. 

The merger of TSLP is useful as the entity is engaged in sponge iron production and marketing and also has one of the largest specialty steel plants in the special bar segment. Going forward, the merger of TCIL will be of great help as it is primarily engaged in manufacturing tinplate, tin-free steel and other products from its plant in Jharkhand’s Jamshedpur. 

TML, S&T Mining and TSML, on the other hand, manufacture steel and offers a range of steel products including products like hot rolled, cold rolled and coated steel, rebars, wire rods, tubes and wires. TSML also offers a well-established distribution network. 

S&T Mining is also engaged in acquiring coal blocks, carrying out exploration, development of mine, extraction and mining of coal from identified blocks. TRF’s merger into Tata Steel is important as the company is engaged in undertaking turnkey projects of material handling for the infrastructure sector and in production of material handling equipments. 

ISWP is in the business of producing wire rods, wires and wire products and TMT rebars. It is also engaged as external processing agent of Tata Steel and manufacturing and direct marketing of welding products, nails, rolls and castings.

Also read: Tata Steel merges subsidiaries for better efficiency; here’s the swap ratio