India’s Tata Steel Limited has decided to merge its wholly-owned subsidiary Nilachal Ispat Nigam Limited (NINL) with itself to consolidate its long product businesses under a single entity, a company statement said on Wednesday, March 18.
Tata Steel Limited had acquired the assets of NINL Limited in 2012 through a government disinvestment program with its bid estimated at $1.31 billion.
Subsequent to the takeover, Tata Steel Limited announced plans to increase the capacity of NINL’s mill located in the eastern state of Odisha to 4.8 million mt, from 0.98 million mt at time of the acquisition.
The company said the merger exercise will simplify structure, enhance management efficiency, ensure better facility utilization, improve raw material security, rationalize logistics costs and result in faster execution of projects in the pipeline.
With the acquisition of the steel complex of NINL, which is situated close to Tata Steel’s Kalinganagar steel mill in Odisha, the latter has also got access to an iron ore mine having 100 million mt of reserves.
The board of Tata Steel has also approved a $2 billion investment in T Steel Holdings Pte Ltd (TSHP), a wholly-owned foreign subsidiary of the company incorporated in Singapore. The primary business of TSHP includes holding equity shares of indirect overseas subsidiaries of Tata Steel Limited and other entities.
Tata Steel Limited routes its investment into overseas businesses through TSHP. The investment will be made starting from 2026-27 onwards and will be used to support overseas subsidiaries (including capex and restructuring costs) and for repayment/prepayment of existing debts, Tata Steel said in its statement.
