Tata Steel has transferred 51 per cent stake it holds in two companies to TSDPL, a wholly- owned subsidiary of the firm, as part of reorganising its India footprint, the steel-maker said on Friday.
“… the Company today transferred the 51% stake it holds in Jamshedpur Continuous Annealing and Processing Company Private Limited (JCAPCPL) and 50% stake it holds in Tata BlueScope Steel Private Limited (TBSPL) to Tata Steel Downstream Products Limited (TSDPL), a wholly owned subsidiary of the Company,” it said in a regulatory filing.
The step was taken to reorganise Tata Steel’s India footprint into 4 clusters to drive scale, synergies and simplification and to create value for all stakeholders.
The transfer will help consolidate its downstream steel processing services, it said.
As on March 31, 2020, the net worth of JCAPCPL was Rs 428.60 crore, while the same for TBSPL was Rs 469.97 crore.
TSDPL was created to bring steel service centre solutions for the first time to industrial customers.
It was originally set up in 1997 as Tata Ryerson Ltd., a joint venture between Tata Steel of India and Ryerson Inc. of the US.
Tata Steel acquired the entire equity of Ryerson Inc in 2009. TSDPL processed 2.6 million tonne of steel in 2019.
The transaction has been completed on January 1, 2021.