Tata Steel has transferred its 51% stake it holds in Jamshedpur Continuous Annealing and Processing Company Private Ltd and 50% stake in Tata BlueScope Steel Private Ltd to wholly owned subsidiary Tata Steel Downstream Products Ltd, as part of reorganising its India footprint. The transactions were carried out on a non cash basis and Tata Steel Downstream Products Ltd issued shares to Tata Steel as consideration for acquiring the stakes. 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 transfer will help consolidate its downstream steel processing services
Set up in 2012, Jamshedpur Continuous Annealing and Processing Company Private Ltd has an installed a capacity of 600,000 tonnes of cold rolling sheets targeting the auto sector.
Set up in 2005, Pune headquartered Tata BlueScope Steel Private Ltd manufactures Coated Steel, Roof & Wall Cladding Products and Pre-engineered Building Solutions. It has its manufacturing units in Jamshedpur, Sriperumbudur, Bhiwadi and Pune. Tata BlueScope Steel has an annual metallic coating capacity of 250,000 tonnes and colour coating capacity of 150,000 tonnes.
As on March 31, 2020, the net worth of Jamshedpur Continuous Annealing and Processing Company Private Ltd was INR 428.60 crore, while the same for Tata BlueScope Steel Private Ltd was INR 469.97 crore. While Nippon Steel of Japan is the other shareholder in Jamshedpur Continuous Annealing and Processing Company Private Ltd, BlueScope Steel of Australia is the partner in Tata BlueScope Steel Private Ltd.
Tata Steel Downstream Products Ltd was created to bring steel service centre solutions for the first time to industrial customers. Tata Steel Downstream Products Ltd was originally set up in 1997 as Tata Ryerson Ltd, a joint venture between Tata Steel of India and Ryerson Inc of the US. Tata Steel acquired the entire equity of Ryerson Inc in 2009. It has a pan-India presence with 10 steel processing plants and 13 distribution and sales locations. The offerings of Tata Steel Downstream Products Ltd include slitting, cut to length, blanking, corrugation, plate burning, fabrication, component manufacturing and steel intensive products and applications. Tata Steel Downstream Products Ltd processed 2.6 million tonne of steel in 2019 and posted a net profit of INR 61 crore in 2019-20
The four verticals Tata Steel proposes to create will be focusing on long products, downstream, mining and services. Tata Steel Long Products Ltd, formerly Tata Sponge Ltd, is the lead entity for long products business. Tata Steel Downstream Products Ltd is the flagship for the downstream activities. In November, the company informed that it would merge Tata Metaliks and Indian Steel and Wire Products to Tata Steel Long Products as part of this exercise.