Tata Steel anxious to leave operations in Southeast Asia, other non-evolving assets; focus on domestic growth

Mumbai: Tata Steel plans to divest its operations in Southeast Asia as part of an exit strategy from non-evolving companies and focus on the internal growth strategy, said a senior manager of the company. Major has been looking for buyers for NatSteel Holdings Singapore and Tata Steel Thailand for some time but without success.

"We are looking at all the badets, whether they are subscale, non-core or otherwise, or that can be simplified, we are considering giving them up," said N Chandrasekaran, chairman of Tata Steel, at the annual general meeting.

But he added that the company would continue to deploy capital in all badets that could create long-term value.

As part of capacity expansion in the domestic market through acquisitions (Bhushan Steel was bought by NCLT process for more than 35,000 crores Rs and became the best bidder for Bhushan Power and Steel for Rs 23,000 crore), he also approved the extension of the Kalinganagar plant in Odisha to a maximum capacity of 8 million tons with an investment in the range of Rs 24 000 crore.

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The expansion will be completed in 48 months, he added, adding that the project will also include the ability to produce value-added products, including galvanized and cold rolled annealed products to serve differentiated customers. "Regarding Bhushan Power and Steel," he said, "we have made an offer for a price that makes sense to us … it's good if we get it." It will continue to To evaluate and pursue growth opportunities in the country through organic and inorganic options, he added.

Commenting on European operations, Chandrasekaran said: "We are awaiting trust approval and hope to close the deal. 39; case. We successfully restructured the British Steel pension plan, including closing down the future provisions plan, with the approval of the UK Pension Regulator. "

On the joint venture agreement signed with Thyssenkrupp of Germany last month, he said it will create a leading pan-European steel company." The joint venture will focus on cost synergies, technology and will have a differentiated product portfolio that will stimulate future value creation. "