The process to merge Tata Steel BSL with Tata Steel has been advanced, the steel major's Chairman N Chandrasekaran said on Wednesday.
Tata Steel had won the bid to acquire debt-laden Bhushan Steel Ltd (BSL) in insolvency proceedings. It was later renamed as Tata Steel BSL Ltd.
"I am happy to report that your company (Tata Steel) has rationalised around 100 legal entities in the last 24 months.
"We have also advanced the process of the merger of Tata Steel BSL with Tata Steel which will also yield further synergies for the company in the future," Chandrasekaran said while addressing shareholders at the company's 114th Annual General Meeting (AGM) held virtually.
"We are also progressing well on the re-organisation and consolidation of the India business of Tata Steel into four clusters long products, mining, downstream, and utilities and infrastructure services," he added.
The growth plan of expanding the Kalinganagar facility to 8 million tonnes per annum (MTPA) from 5 MTPA is also underway.
He further said due to the pandemic, the Indian steel industry suffered production losses, especially in the first two quarters of the financial year 2020-21.
The industry recovered gradually in the third and fourth quarters driven by a strong revival in the domestic steel demand and rebound in manufacturing and infrastructure development activities in India.
Against this backdrop, Tata Steel too had a very challenging first quarter. However, with the efforts and commitment demonstrated by the employees, the company not only overcame the crisis but also produced the best underlying financial performance in its history, he said.
"For the FY 2020-21, the consolidated revenues increased by 5 per cent to Rs 1,56,294 crore, and on the back of a very strong operating performance of its Indian business, Tata Steel achieved its highest ever EBITDA of Rs 30,892 crore, which is a growth of 71 per cent year-on-year. The consolidated profit after tax also increased to Rs 8,190 crores," Chandrasekaran said.
In his address to shareholders, Ratan Tata, Chairman, Tata Trusts and Chairman Emeritus, Tata Sons, said, "Tata Steel has a special place in my heart. This is where I began my career in Tatas 57 years ago, where I had the opportunity of working on the shop floor for three years, watching the Company grow, seeing and interacting with people like JRD Tata, Russi Mody, and Nanavati."
Despite the challenges of the Covid pandemic across the world and the drop in demand, Tata Steel has achieved the results announced, especially the highest-ever dividend in its history, which will make all shareholders who stood with the company very grateful and happy, he said.
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