Expanding Horizons: T.V. Narendran, Chairman, Tata Steel Long Products (TSLP)
Tata Steel Long Products (TSLP) is one of India’s largest specialty steel producers in Special Bar Quality (SBQ) segment and merchant DRI producers with strong presence in the wire rod market. As its chairman, T.V. Narendran termed FY22 as the "best-ever performance" by TSLP despite challenges.
"TSLP grew its topline by 43 per cent (Y-O-Y) to Rs 6,802 crore. Focus on operational and cost efficiencies led to TSLP reporting its highest ever EBITDA of Rs 1,289 crore during the year compared to Rs 1,154 crore in FY 2020-21. Strong capital management and deleveraging of the balance sheet also grew the bottom line (profit before tax) to Rs 858 crore from Rs 615 crore in FY21 (40 per cent increase on Y-O-Y basis)," said Narendran.
TSLP is a subsidiary of Tata Steel where Narendran is the CEO & Managing Director. He has over 35 years of experience in the metals and mining industry and has been a thought leader on complex, strategic and operational matters relating to steel industry. He spearheaded the company in acquiring the Steel Business of Usha Martin during 2019 and has recently overseen the acquisition of Neelachal Ispat Nigam. He is a member of the Executive Committee and the Board of the World Steel Association and President of the Indian Institute of Metals. He served as the President, CII from 2021 to 2022.
On Growth Path
Tata Steel Long Products is well-poised to capitalise on the opportunities in the long products industry. Over the past few years, it has been steadfastly integrating and stabilising the acquired facilities of Usha Martin. The improvement and de-bottlenecking journey continues for existing facilities. The company is also set to grow as per its defined strategic roadmap to secure a leadership position in the chosen segments of Automotive and Construction.
In FY22 the company further strengthened its growth potential with the acquisition of Neelachal Ispat Nigam (NINL) which was completed in July 2022, for a total consideration of Rs 12,100 crore. This acquisition, will add 1 MnTPA to the company’s steelmaking capacity, together with iron ore reserves of around 100 MnT, said Narendran. In fact, in early July of 2022, Tata Steel said it had completed the acquisition of 93.71 per cent in Neelachal Ispat Nigam (NINL) through its listed step-down subsidiary, TSLP.
On January 31, 2022, TSLP was declared the winning bidder for the one million tonne (mt) NINL, an asset owned by central and state public sector undertakings, in a process run by the Department of Disinvestment & Public Asset Management (DIPAM), for a consideration of Rs 12,100 crore. The transaction was completed in July through a purchase of equity shares and non-convertible redeemable preference shares, the company had said.
Readying for Future
During coming financial years, TSLP will be looking at strengthening systems and processes —striving for business excellence through the implementation of better
safety practices and capability building. The community remains at the heart of our operations. “In keeping with the Tata ethos, we will be prioritising the promotion of inclusive social development through our CSR initiatives in health, education, sanitation and livelihood enhancement,” Narendran told shareholders.
