Tata Steel said it has transferred its stake in two companies to Tata Steel Downstream Products Ltd (TSDPL), a wholly- owned subsidiary of the firm, as part of reorganising its India footprint.
“The company today transferred the 51 per cent stake it holds in Jamshedpur Continuous Annealing and Processing Company Private Ltd (JCAPCPL) and 50 per cent stake it holds in Tata BlueScope Steel Private Ltd (TBSPL) to Tata Steel Downstream Products Ltd (TSDPL),” it said in a regulatory filing.
The step was taken to reorganise the company”s India footprint into four clusters to drive scale, synergies and simplification and to create value for all stakeholders, the steelmaker said.
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 United States (US).
Tata Steel acquired the entire equity of Ryerson Inc in 2009.
TSDPL processed 2.6 million tonne of steel in 2019.