by admin | May 25, 2021 | Business, Corporate, Corporate Buzz, Large Enterprise
Kolkata : Debt-ridden Electrosteel Steels on Tuesday said four companies- Tata Steel, Vedanta, Renaissance Steel India and Edelweiss Alternative Asset Advisors Pte -have submitted bids to its Resolution Professional, under the corporate insolvency resolution process in terms of the Insolvency and Bankruptcy Code, 2016 (IBC).
The company, which owes lenders Rs 11,309 crore, had been referred to the bankruptcy court by the State Bank of India (SBI) under Section 7 of the IBC following a nudge from the Reserve Bank of India. The RBI had asked banks to refer a dozen troubled companies to the National Company Law Tribunal (NCLT).
The company said the corporate insolvency resolution process, in terms of IBC, was commenced against it pursuant to the order dated July 21, 2017 passed by National Company Law Tribunal’s (NCLT), Kolkata bench.
The Resolution Professional had issued an expression of interest requesting prospective investors i.e. potential resolution applicants to submit their bids in relation to the corporate insolvency resolution of the company.
As intimated by the RP, on close of business on January 4, four resolution plans werre received, the company said in a regulatory filing.
It said the plans have been received from “Renaissance Steel India Private Ltd, Tata Steel Ltd, Vedanta Ltd and Edelweiss Alternative Asset Advisor Pte Ltd acting as the investment advisor of EISAF II and EC Holdings, with support of Edelweiss Asset Reconstruction Company Ltd”.
—IANS
by admin | May 25, 2021 | Corporate, Corporate Buzz
Hyderabad : Tata Steel Ltd has been awarded the Prime Minister’s Trophy for ‘Best integrated steel plant’ for 2014-15 and 2015-16.
This is the third time in a row that the award has been given to Tata Steel.
Vice President M. Venkaiah Naidu on Friday presented the award to Anand Sen, President, TQM & Steel Business, Tata Steel and R Rabi Prasad, President, Tata Workers’ Union during the Golden Jubliee celebrations of National Mineral Development Corporation (NMDC) here.
The Steel Minister’s trophy was given to JSW Steel Ltd, Vijayanagar. Jindal Steel Plant won the first prize for maximum incremental improvement, while Rashtriya Ispat Nigam Ltd (RINL), Visakhapatnam won the second prize.
Tata Steel has so far been recognised as the best integrated steel plant 12 times; having won the PM’s Trophy 10 times since its inception in 1992-93 and received the Certificate for Excellence twice.
—IANS
by admin | May 25, 2021 | Corporate, Corporate Reports, Investing
New Delhi : Global corporate giants are investing hugely in water security and management with a three-fold rise in just one year, an annual water report said on Tuesday. They committed to $23.4 billion of investment in water projects in 2017 alone.
In India too, companies are spending heavily to mitigate the risk of water supply with Tata Steel $38 million, ITC along with MNCs like Diageo, L’Oreal and Symrise AG also reporting spends in millions.
The report, ‘A turning tide: Tracking corporate action on water security’, published by non-profit environmental disclosure platform CDP, analyses water data from 742 of the world’s largest companies, including Nestle, Burberry and Kellogg’s.
It finds escalating boardroom engagement in water issues. The report highlights growing accountability and performance in water management with a 40 per cent increase in disclosure since 2016 and a 193 per cent increase in the number of companies featured on the CDP water A List.
The US (13), Japan (12) and Britain (nine) are the three countries with the most companies on the water A List.
Companies committed to $23.4 billion of investment in water projects in 2017 such as desalination plants, reclaiming waste water or improved irrigation to avoid droughts across 1,000 projects in 91 countries.
The report says the energy sector continues to be the biggest laggard, with 101 out of the 138 energy companies asked to disclose failed to do so.
Exxon Mobil and Royal Dutch Shell are among those companies persistently failing to reveal water data to investors via CDP.
Seven companies including Diageo (Britain), Colgate Palmolive (US) and Nestle (Switzerland) are now putting a higher price on water internally to reflect its increasing business cost.
“From Bangladesh to Peru and the US, climate risks – and in particular water risks – have been very real in 2017,” an official statement quoting CDP’s water scoring partner and South Pole Group CEP Renat Heuberger said.
“South Pole Group believes companies need to continue to improve their understanding, management, and transparency of water risks, in order to help inform better decision making. Together with CDP, we are committed to delivering a water-secure world.”
Companies in India increasingly report that both quality and quantity issues are constraining their business, CDP India Director Damandeep Singh told IANS.
“With uncertainty in monsoon rains and declining water availability many companies have stepped up water conservation efforts in close collaborations with stakeholders in their watersheds and river basins.
“However, many more initiatives are required which include incorporating the true value of water into their core business strategy,” he said.
In total, 4,653 companies were asked to report to CDP on their water activities in 2017, with a 44 per cent response rate.
—IANS
by admin | May 25, 2021 | Business, Corporate, Corporate Buzz, Large Enterprise
Mumbai : Tata Steel Ltd and German major thyssenkrupp AG have signed a memorandum of understanding (MoU) to create a 50:50 joint venture by combining the flat steel businesses of the two companies in Europe and steel mill services of the German company, a top company official said here on Wednesday.
The proposed 50:50 joint venture — “thyssenkrupp Tata Steel” — would be focused on quality and technology leadership, and the supply of premium and differentiated products to customers, with annual shipments of about 21 million tonnes of flat steel products, the steel maker said in a statement.
It said the joint venture would have a pro forma turnover of about €15 billion per annum (Rs 1,15,000 crore). It currently employs about 48,000 people spread across locations and would be headquartered in Amsterdam, the Netherlands.
“Based on our initial assessment, cost synergies in the range of €400-600 million per annum may be realised through integration of commercial functions, R&D and other supporting activities.
“Both shareholders have taken care to ensure that the balance sheet of the combined venture will be structured to ensure a sustainable business going forward,” Tata Steel’s Group Executive Director Kaushik Chatterjee said.
The proposed transaction in Europe also paves the way for significant de-leveraging of the Tata Steel group’s consolidated balance sheet and provides a platform for it to pursue future growth, he added.
According to him, the proposed combination of businesses would be formed through a non-cash transaction framework, based on fair valuation where both shareholders would contribute debt and liabilities to achieve an equal shareholding in the venture.
In a statement Heinrich Hiesinger, CEO of thyssenkrupp AG said: “Under the planned joint venture, we are giving the European steel activities of thyssenkrupp and Tata a lasting future. We are tackling the structural challenges of the European steel industry and creating a strong No. 2.”
“In Tata, we have found a partner with a very good strategic and cultural fit. Not only do we share a clear performance orientation, but also the same understanding of entrepreneurial responsibility toward workforce and society,” Hiesinger added.
The German steel maker also said, in the months ahead, due diligence will be conducted.
“In the process, the negotiating parties will give each other access to confidential business documents to the extent permissible between competitors.
“Based on this, as well as on discussions with the entire Supervisory Board, it is envisaged to sign a contract in early 2018. Closing — the effective start of the joint venture — could take place in late 2018 following anti-trust approval by the relevant authorities,” it said.
Commenting on the MoU, Tata Steel Chairman N. Chandrasekaran said: “The Tata Group and thyssenkrupp have a strong heritage in the global steel industry and share similar culture and values. The strategic logic of the proposed joint venture in Europe is based on very strong fundamentals and I am confident that the joint venture will have a great future.”
The proposed joint venture would have a robust capital structure that is well matched by the underlying free cash flows of the company, Chatterjee said.
—IANS
by admin | May 25, 2021 | Corporate, Corporate Buzz, Investing, Pensions & Sipps
Mumbai : Tata Steel UK on Monday said it has separated itself and a number of affiliated companied from the British Steel Pension Scheme (BSPS), following the regulator’s confirmation on its pensions deal.
“Tata Steel UK has received confirmation from the Pensions Regulator that it has approved a Regulated Apportionment Arrangement (RAA) in respect of the British Steel Pension Scheme (BSPS). The BSPS has now been separated from the steel producer and a number of affiliated companies,” the company said in a statement.
As part of the RAA, a payment of 550 million pounds from the company has been made to the BSPS and shares in Tata Steel UK, equivalent to a 33 per cent economic equity stake in the company, have been issued to the BSPS Trustee under the terms of a shareholders’ agreement, the company said in a statement.
The steel producer has also agreed to sponsor a proposed new pension scheme, subject to certain qualifying conditions being met. Now the RAA has completed, all members of the BSPS will be invited to transfer to the new scheme.
“If the qualifying conditions are met, members who choose to will transfer to the new scheme. The new scheme would have lower future annual increases for pensioners and deferred members than the British Steel Pension Scheme, giving it an improved funding position which would pose significantly less risk for Tata Steel UK,” it said.
The BSPS Trustee will, in due course, communicate with all scheme members about the separation and the proposed new pension scheme.
Tata Steel’s Group Executive Director Koushik Chatterjee said: “The completion of the RAA follows many months of hard work to provide the most sustainable outcome for pensioners, current employees and the business.”
According to him, much work is still needed to ensure the business is competitive in future and the next step in this pensions process involves necessary formalities to set up the new scheme with a lower risk profile following the necessary member consent process led by the trustee.
“This will take some time to implement given the wide membership base of the scheme. The net financial impact of the RAA including the payment of the agreed 550 million pound settlement amount will be reflected in the Q2 FY18 financials for the company,” he added.
—IANS