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'Capital in Tata Steel Europe posed a risk to whole group'

Last Updated 06 December 2016, 17:25 IST

Taking on the Tatas once again, ousted Tata Sons chairman Cyrus Mistry said that the huge capital employed in Tata Steel’s European operations posed a risk to the group.

 “The total capital employed in Tata Steel Europe grew from Rs 67,000 crore in FY12 to over Rs 93,500 crore in FY15. The amount of capital earning negative returns posed a risk to the overall group,” Mistry said in a representation to the board of directors of Tata Steel ahead of the company’s EGM on December 21.

“There have been insinuations that the board of Tata Steel only looked at our UK investments through a short-term financial lens. This is furthest from the truth, as can be gauged from our continued investments in these assets, as well as the significant amount of management bandwidth devoted to optimise operations,” Mistry said.

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(Published 06 December 2016, 17:25 IST)

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