ET reported that TATA Steel is planning to form an international company for consolidating its raw material assets that are spread across the world and which could eventually be used to raise funds for future acquisitions.
Mr Koushik Chatterjee group CFO of TATA Steel said that "We will reorganize our group structure to unlock shareholder value over the next 6 to 12 months for growth in raw material assets and new market strategies. We are looking at an overseas group structure below TATA Steel to create the appetite for acquisitions. Since it would require capital, we are looking at various options."
Mr B Muthuraman MD of TATA Steel said that "Ownership of raw materials and a continuous improvement in production has been the key to TATA Steel’s profitability. In fact we have believed in owning raw materials for the past 100 years."
In addition to mining assets in India TATA Steel also owns raw material assets such as coal and limestone mines through joint ventures or completely, with the assets spread across countries such as Australia, Oman and Mozambique. brought to you from steelguru.com