Tata Steel: Will continue to evaluate, pursue growth opportunities in India

"The acquisition of Bhushan Steel is a strategic investment which has the potential to enhance Tata Steel's product portfolio and market competitiveness in the near future," the steel firm said in its annual report.

By: PTI | New Delhi | Published: July 1, 2018 10:45:21 am
 Tata Steel: Will continue to evaluate, pursue growth opportunities in India In addition to the organic growth strategy, Tata Steel also expressed its interest and bid for multiple assets that were put up for sale under the Insolvency and Bankruptcy Code. (File)

Terming the takeover of Bhushan Steel as “strategic investment”, Tata Steel has said it will continue to pursue growth opportunities in India through both the organic and inorganic routes in future.

“The acquisition of Bhushan Steel is a strategic investment which has the potential to enhance Tata Steel’s product portfolio and market competitiveness in the near future,” the steel firm said in its annual report.

The company, it said, will continue to evaluate and pursue growth opportunities in India through organic and inorganic options in the future to grow in line with the underlying Indian economy.

In addition to the organic growth strategy, Tata Steel also expressed its interest and bid for multiple assets that were put up for sale under the Insolvency and Bankruptcy Code.

“Following a rigorous and transparent process…the company was identified as the highest bidder for the acquisition of controlling interest in Bhushan Steel Ltd,” Tata Steel said in its Annual Report 2017-18.

In Europe, the company successfully restructured the British Steel Pension Scheme, including closing the scheme for future accruals under the Regulated Apportionment Arrangements, with the approval of the pension regulator in the UK.

Tata Steel also entered into a pact with Thyssenkrupp AG in September last year to combine the European steel businesses of both companies and create a leading pan-European steel enterprise.

The proposed joint venture, it said, will focus on driving cost synergies, technology and will have a differentiated product portfolio that will drive future value creation.

The process of creating the joint venture involves simultaneous multi-stakeholder consultations, which is currently at an advanced stage, it added.

Tata Steel, which emerged as the biggest bidder for Bhushan Steel with a Rs 32,500-crore deal in the insolvency process, completed the acquisition of controlling stake of 72.65 per cent in the debt-laden firm on May 18.

Post takeover, Tata Steel had said it will raise Rs 16,500 crore through debt instruments to fund Rs 32,500 crore acquisition of Bhushan Steel Ltd.

The remaining amount will be raised through internal resources, it had said.

The bankrupt firm was among the 12 stressed assets the RBI had referred for NCLT proceedings last year.

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