Tata Steel Mothballs Sale of Southeast Asian Business Unit

SEATTLE (Scrap Monster): Tata Steel announced that it has called off plans to sell its Southeast Asian business. The move follows marked improvement in performance of the business unit since it was put for sale in early 2019. It must be noted that the business witnessed almost 50% surge in operating profit to INR 549 crore during fiscal 2021.

In a regulatory filing, the company stated that it has cancelled the earlier classification of its steel business in Southeast Asia region, comprising of operations in Singapore and Thailand, as ‘held for sale’, further to reviewing its progress. The reclassification puts the Southeast Asian operations as ‘continuing operations’.

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Furthermore, the company has also decided to evaluate opportunities in India. The company said to have expressed interest in Rashtriya Ispat Nigam. It must be noted that the government had recently announced plans to sell its stake in the company. Also, Tata Steel has expressed interest in Neelachal Ispat Nigam-an Odisha-based public sector undertaking PSU).

Tata Steel reported free cash flow of Rs 23,748 crore in fiscal 2021, mainly driven by robust operating performance of its India business. For the fiscal, the company reported profit of INR 8,190 crore, as compared with profit of INR 1,172 crore in fiscal 2020.