Tata Steel to take up 5,000 workers of Bhushan Steel
New Delhi : Tata Steel Ltd, an Indian steel making company has decided to take all 5,000 employees of Bhushan Steel largest manufacturer of auto-grade steel in the country. The decision is a part of declaration submitted by Tata Steel, recently.
Following the plans for Bhushan Steel, TV Narendran, managing director of Tata Steel said ‘while BSL is right now operating at around 3-3.5 million tonne (mt) capacity, we can easily see it operating at 4-4.5 mt’. The plan came to public notice a day after the the National Company Law Tribunal (NCLT) approved Tata Steel’s bid for the debt-ridden company.
Narendran, however, added to take it beyond 5 mt production level will call for more investments. But it can easily be taken from 5 mt to 8 mt.
During a press meet to announce the company’s result, he said, ‘We will take on board all 5,000 employees as part of the resolution plan that we have submitted’. Tata Steel has been allegedly facing ground level resistance in and around the BSL unit at Odisha, his comments are likely to calm down concerns of contractual workers who are reportedly suffering job losses after the proposed acquirement.
For supporting Bhushan Steel acquisition, Narendran said, “out of the Rs 35,000 crore, we will put in Rs 18,000 crore from our own capital, balance will be met from additional debt”.
“We did not create more trouble when we lost out on Electrosteel. We didn’t know when we were bidding for Electrosteel that there is just one chance so we learnt from it and didn’t take that chance in Bhushan. Value maximisation argument can go on for years,” Narendran said. Sharing the sales guidance for 2018-19, Narendran said the company hopes to sell 12.5 mt from India and another 10 mt from Europe. On the demand front, Narendran said there is a huge pull from auto sector. The quarter-on-quarter overall steel demand is in excess of 8-9%. “India hasn’t seen such demand in a long time, he added. Tata Steel is looking at a capex of around Rs 8,000 crore for the current fiscal, the company’s Executive Director & CFO Koushik Chatterjee said.