The Tata Steel Board has approved the merging of six subsidiaries and partner companies into it, trying to consolidate the metal and mining business and simplify the holding structure.

The decision on Thursday was for registered companies Tata Steel Long Products, Tinplate Company of India Limited, Tata Metallic, and TRF, said the press statement.

Tata Steel Long Products, The Tinplate Company, Tata Metallic, Indian Steel & Wire Products, Tata Steel Mining, S&T mining is the majority owned by Tata Steel. The council also approved the merger of TRF (34.11 Equity Holding), a partner company, into Tata Steel.

Tata’s steel statement said consolidation would increase management efficiency, encourage sharper strategic focus and increase agility throughout the business. Consolidation of downstream operations will allow the growth of the value of added value by utilizing the national marketing and sales network of Tata Steel.

This step will also encourage synergy through the safety of raw materials, centralized procurement, optimization of inventory, reducing logistics costs, and better use of facilities. After completion, there will be further opportunities for reducing overhead and company costs. “Each proposed merger will be a value for shareholders,” the statement said.

Consolidation continues the Tata Steel drive to simplify the Holding Group structure. Since 2019, Tata Steel has reduced 116 related entities (72 subsidiaries have no longer existed, 20 partners and joint ventures have been eliminated and 24 companies are liquidated).

The council considers proposals based on independent opinions and assessments. This follows the process determined based on the Company Law, 2013 and the Securities and Exchange Board of India regulations, said Tata Steel.

The proposed merger has been approved by Tata Steel Board and all companies that combine. The scheme of the previous metallic merges in and with a long system of steel has been withdrawn.There is a change in group leadership of group companies as well.

In the exchange of exchanges, Tata Metalams said that Sandeep Kumar, director of the company, had stated his intention to resign from the company’s services from the close of working hours on October 31, 2022, to take similar opportunities in the Tata Steel Group. And Alok Krishna will be responsible as an effective Implementing Director November 1, 2022.