Reading Article

Tata Steel seeks more buyouts

by praveen
August 30th, 2007

Will Undertake Acquisitions As And When It Makes Sense: Ratan Tata

Mumbai : Tata steel’s $12.9 billion Corus buy does not mean the end of its acquisition ambitions as the steel major on Wednesday said it along with corus would go for more acquisition ‘as-and when it make sense.’ “both the companies (Tata steel and corus) will undertake acquisitions as and when it make sense,” Tata steel chairman Ratan Tata said while responding to a shareholder’s question at the company’s 100th annual general meeting here. He said the apprehensions in the market post-Corus acquisition that the company’s financial performance would be impacted had been proved. ‘unfounded’ and the share prices of the company has gone up by 20% year-on-year for the past 10 years.
Stating that financing part of Corus buy has been tied up substantially, he said the combined entity now have 26 million tonne steel making capacity, sixth largest in the world. Tata said the work on company’s proposed six million tonne integrated Greenfield steel plant at Kalinganagar in Orissa is progressing well and orders for some equipment have already been placed.
The company also has plans to set up greenfeld projects in Chhattisgarh and Jharkhand for which it has already signed MOUs with the respective governments and initiated dialogues with authorities concerned for allotment of new mines, land acquisition and rehabilitation packages.
On the brownfield expansion in Jharkhand, he said capacity addition to 6.8 million tones from five million tones now would be completed by next year and to 10 million tone by 2010.
Tata steel, in its annual report, has stated that it was exploring opportunities for setting up facilities for extraction of heavy minerals, upgradation of llmenite to synthetic rutile and a captive power plant at Tamil Nadu.
Meanwhile, Tata being bullish on the future of the steel industry, said global demand for steel would fo up to 1.3 billion tones by 2010 from 1.1 billon tonnes now primarily on Chines demand.
Referring to domaestic demand for steel, he said India’s steel consumption would go up to 125 million tones by 2010 from 65 million tones now and the per capita consumption to go up to 78 kg’s from 38 kg’s now by 2015.
He also anticipates more consolidation in the global steel industry. The company would delist its shares from the Calcutta stock Exchange, Tata said.
On the centenary year, Tata steel board has recommended a 130% dividend and a special dividend of 25%.
Meanwhile Tata steel reported an over six-fold leap in its consolidated profit after tax (PAT) at Rs 6,388 crore in the first quarter this fiscal on acquisition of Anglo-Dutch steel maker Corus Group Plcearly this year.
Tata Steel, the global steel major, which is now the worl’ds sixth biggest maker of the alloy, had recorded a consolidated profit after tax of Rs 1,014 rore in the same period last fiscal.

There Are No Comments To This Article

Leave A Comment

You must be logged in to post a comment.

Related Articles

Missing Plugin: Simple Tags