Tata Steel Ltd.

Tata Steel will exit its non-core businesses and use the money to fund expansion plans. Tata Steel plans to increase capacity at Jharkhand by three million tonnes to 10 mt from 6.8 mt by the end of this fiscal, at an investment of Rs 15,000 crore. It will ramp up production of flat steel items, mainly used by the automobile and consumer durables sectors, to 5.83 mt from 3.04 mt. The expansion is part of the company's plans to increase capacity to 16 mt by 2014, at an investment of about Rs 40,000 crore.

In the September quarter, its subsidiary, NatSteel Holdings Pte, sold its stake in Malaysia-based Southern Steel Berhad for about Rs 320 crore. The company registered other income of Rs 733 crore (on a standalone basis) in the second quarter of this fiscal. It divested its stake in Tata Motors and Tata Power to Tata Industries, an entity promoted to encourage investments in high-tech businesses.

At the end of the September quarter, the company held 5.84 per cent stake in Tata Motors and 0.73 per cent in Tata Power. The company approved a fund raising programme of Rs 7,000 crore to deleverage its balance sheet and invest in expansion projects.crackcrack