“To build a similar facility would have taken significant time and costs and therefore, this acquisition is very timely as we are looking to ramp up the capacity of the Phase-1 Kalinganagar. The acquisition will be funded from internal cash flows of Tata Steel.The deal, which is subject to regulatory approvals, is expected to close in four months.Tata steel makes acquasition for Rs 900 crore in cash –> –> –> Search China Basin Faucet Manufacturers Horoscope IndiaPoliticsCrimeAll IndiaWorldSouth AsiaAsiaMiddle EastAfricaEuropeAmericasOceaniaMetrosDelhiKolkataMumbaiIn Other CitiesBusinessEconomyMarketCompaniesAutosIn Other NewsOpinionEditOpedColumnistsInterview of the IST Company acquired Brahmani River Pellets Ltd (BRPL), which had a turnover of Rs 452 crore in 2015-16.MIG was formed on demerger from the Stemcor Group of Companies as part of a UK court-approved restructuring in 2015. The deal between both the companies which is subject to regulatory approvals, is expected to close in four months. It manufacturers iron ore pellets for iron and steel industry.”The iron ore from Tata Steel’s captive mine in the Joda and Khondbond region will be transferred in future through slurry pipeline to reduce freight costs significantly.7 million tons iron ore beneficiation plat in Bardil, Odisha.Also,the pellet plant and other infrastructure will enhance the operating efficiency and reduce costs of blast furnace and operations in Kalinganagar.
“The acquisition of the company is being made at an enterprise value of Rs 900 crore plus closing adjustment,” it said. The company was originally established by the Moorgate Industries Group (MIG), which continues to hold a significant stake in BRPL through its shareholding in AMTC.”Tata Steel Ltd announces that it has executed definitive agreements to acquire 100 per cent equity shares of BRPL from Arya Mining and Trading Corp Pvt Ltd (AMTC) and other companies in the MIG,” the statement said. Tata Steel currently has an aggregate capacity to produce 28 million tons of crude steel and had a turnover of USd 17. BRPL was incorporated on August 24, 2006 and is engaged in the business of acquisition and beneficiation of iron ore and the manufacture and sale of iron ore pellets. New Delhi: Tata Steel today said it has signed an agreement to acquire Odisha-based iron ore pellet manufacturer BRPL for Rs 900 crore in cash.Pellets are used as agglomerates in the iron making process. “The acquisition provides an upstream integration opportunity to Tata Steel to meet its metallic requirements and improving the feed mix for its Kalinganagar steel plant and Jamshedpur steel plant,” the company said in a statement. Brahmani River Pellets Ltd (BRPL), which had a turnover of Rs 452 crore in 2015-16, owns a 4 million tons per annum capacity pellet plant in Jajpur and a 4.A 220-km slurry pipeline connects the pellet plant with the beneficiation plant.Koushik Chatterjeee, Group Executive Director (Finance & Corporate) and member of the Tata Steel board said: “The location of the BRPL assets makes this very strategic to Tata Steel especially to our Kalinganagar operations and has significant operating synergies to make our Kalinganagar plant even more competitive for the future. It also needs approval from RBI and other regulatory bodies to restructure BRPL’s balance sheet, including shareholders loan and advances.69 billion in FY16.This is also a demonstration of our commitment to the state and people of Odisha,” he said. end-of Tags: tata steel, brahmani river pellets ltd
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