Indian steel producer Neelachal Ispat Nigam Limited (NINL) which was acquired earlier this year by India’s Tata Group will continue to operate as an independent company even as the group announced that seven of its metal companies will be merged with Tata Steel Limited, the company clarified in a statement on Monday, September 26.
Tata Group had acquired the one million mt per year Odisha-based steel mill of NINL through the government’s privatization process through group company Tata Steel Long Products Limited (TSLPL).
Last week, Tata Group’s board approved that seven metal companies including TSLPL would be amalgamated and merged with Tata Steel in a restructuring exercise to bring greater synergies of management and operation of the entities.
Though TSLPL, the acquirer of NINL will be merged with Tata Steel and cease to exist, NINL will become a subsidiary of Tata Steel and continue to maintain an independent status as per the terms and conditions of the government divestment of its holding in the company in favor of Tata Group.