Tata Steel set to merge Tata Sponge and Tinplate
Kolkata: Tata Steel Thursday said the company has plans to merge Tinplate Company of India Ltd and Tata Sponge Iron Ltd with itself.
"A company like Tinplate is like an extension of our steel plant. Tata Steel's cold rolling and coating is done there. But for some historical reasons they have remained as separate companies," Tata Steel managing director H M Nerurkar said Thursday.
Such plants remained as divisions the world over, he said citing examples of Nippon Steel and Arcelor Mittal.
"From technology to research and development, everything is sourced from the parent. Keeping these companies separate means extra taxes, separate work culture," he said.
"You might ask why didn't we do this obvious thing all these years. Its a valid questions. But the fact is we are doing it now," Nerurkar said, adding it would be done "as soon as possible".
He was talking to reporters on the sidelines of Indian Institute of Metals AGM where he took over as president for the current year.
Tata Steel currently holds 59.4 percent in Tinplate and just under 40 percent in Tata Sponge. Tata Steel has announced open offers for both the companies last month.
The open offer is for 14 percent in Tinplate and 11.4 percent for Tata Sponge. Later, it said the offer would start on August 6 to close on August 22.