Tata Steel on Wednesday said its board has decided not to pursue a merger with TRF Ltd as the associate’s business performance is improving. Tata Steel had earlier announced the merger of nine of its strategic businesses including Tata Steel Long Products, Tinplate India, Tata Metals, TRF, Steel & Wire Products India, Tata Steel Mining Ltd, S&T Mining Company.

Tata Steel said in a statement, “The boards of both companies have decided not to pursue the merger process. With the active support of Tata Steel, TRF has successfully navigated a very challenging operating environment and has seen its business Improvement in performance.”

Since announcing its intention to merge, Tata Steel has provided significant operational and financial support through order placements and capital infusions. Tata Steel further said that it has successfully merged five companies after formal completion of regulatory procedures and the integration is ongoing.

These companies include Tata Steel Mining Ltd (annual turnover of Rs 5,000 crore in FY23, merger effective September 1, 2023) and Tata Steel Long Products Ltd (annual turnover of Rs 7,464 crore in FY23 , the merger is effective November 15, 2023). The Mining Company Ltd merger will be effective from December 1, 2023, while The Tinplate Company of India Ltd has an annual turnover of Rs 3,983 crore in FY23 and the merger will be effective from January 15, 2024.

Furthermore, Tata Metaliks Ltd has an annual turnover of Rs 3,260 crore in FY23 and the merger will be effective from February 1, 2024. The five companies, which have a cumulative annual turnover of about Rs 19,700 crore in FY23, completed the merger in record time, providing Tata Steel with consolidation of its downstream operations.

This will enable growth in value-added areas by leveraging Tata Steel’s nationwide marketing and sales network. The company said the merger can add value and will also drive synergies through raw material security, centralized procurement, optimized inventory, reduced logistics costs and better facility utilization.

The company further said that the merger process involves Bhubaneswar Power Private Limited (wholly owned subsidiary of Tata Steel), Angul Energy Ltd (Tata Steel holds – 99.99%) and Indian Steel and Wire Ltd. (Tata Steel holds – 98.15%), engagement with the Company Law Tribunals of their respective jurisdictions is at an advanced stage and is expected to be completed by Q1FY25, subject to regulatory approval approve.

According to Tata Steel, TRF Ltd is its associate company that undertakes material handling turnkey projects for infrastructure sectors such as power and ports, and industrial sectors such as steel plants, cement, fertilizers and mining.

TRF also manufactures such material handling equipment at its manufacturing facility in Jamshedpur.

(This story has not been edited by News18 staff and is published from associated news agency – PTI)