Tata Steel to ramp up NINL operation to 1.1 MTPA within a year: Chairman
Tata Steel Chairman N Chandrasekaran on Tuesday said the company, after completing the acquisition, will boost the operation of Neelachal Ispat Nigam Ltd to a rated capacity of 1.1 million tonnes per annum within the next one year.
However, the ramping up of the operations of Neelachal Ispat Nigam Ltd (NINL) would be subject to obtaining statutory clearances.
''Post-acquisition, we will endeavor to ramp up the operations of NINL to its rated capacity of 1.1 million tons per annum within the next 1 year, subject to obtaining statutory clearances,'' Chandrasekaran said in his address to shareholders during the company's 115th Annual General Meeting.
Tata Steel arm, Tata Steel Long Products (TSLP), in January this year won the bid to acquire a 93.71 percent stake in NINL at an enterprise value of Rs 12,100 crore, leaving behind the likes of a consortium of Jindal Steel and Power Limited, Nalwa Steel and Power Ltd, and JSW Steel Limited.
The company, Chandrasekaran said, made significant acquisitions during the year in the areas of long products, mining, and advanced materials adding that the most notable among these is the buyout of Neelachal Ispat Nigam Ltd for an aggregate consideration of Rs 12,100 crore.
Towards organic growth, Tata Steel continued to accelerate its capital allocation for the 6 million tonnes per annum (MTPA) pellet plant and 2.2 MTPA cold rolling mill complex as part of the five MTPA expansion at Kalinganagar.
The 6 MTPA pellet plant will be commissioned in the third quarter of the ongoing fiscal, followed by the cold roll mill complex and the 5 MTPA expansion, which will drive cost savings and product mix enrichment.
The company's growth plans continue to be governed by the demand forecast, size of business opportunity, scope for enhancements in its product portfolio, and overall balance sheet impact while remaining cognizant of changing regulatory imperatives.
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