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Tata Steel plans to invest Rs 300-400 crore in USL’s specialty steel division

27 Sep 2018 Evaluate

Tata Steel is planning to invest Rs 300-400 crore in FY20 into Usha Martin’s specialty steel division. The Usha Martin (USL) board on September 22, 2018 had signed an agreement with the company to sell the Kolkata-based firm's steel and wire rope business for a cash consideration of up to Rs 4,300-4,700 crore in a slump sale.

The company will help in improving the blended EBITDA/tonne (operating margins per tonne) of the acquired business to Rs 8,000 per tonne by FY21, from the current Rs 6,800 per tonne on the back of captive coal supplies, optimisation of sales mix and other operational synergies.

Tata Steel, the flagship company of the Tata group is the first integrated steel plant in Asia and is now the world’s second most geographically diversified steel producer and a Fortune 500 Company.

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211.35 -0.70 (-0.33%)
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