Ahlada Engineers takes IPO route after exclusive biz deal with Tata Steel

Tata Steel's green initiative to promote steel substitute for wooden doors in commercial and residential space through an exclusive tie-up with Hyderabad-based Ahlada Engineers has the latter taking initial publAhlada Engineers takes IPO route after exclusive biz deal with Tata Steel ic offering (IPO) route using the NSE SME platform for additional capital to build supply capacities.

Tata Steel had entered into a master manufacturing and supply agreement (MMSA) with Ahlada in August last year for procurement of close to 1.2 million doors in four years with an option to renew the pact for four more years. Coming with a touch and feel similar to wooden doors, this product would be exclusively marketed by Tata Steel under the brand name 'Tata Pravesh'.

A manufacturer of clean room equipment and stainless steel furniture for pharma and food processing industry, Ahlada started producing steel doors and the matching steel windows in the wooden finish in small quantities in 2013. With Tata Steel spotting the potential of its product, Ahlada decided to completely switch to wood finish doors and windows manufacturing with a plan to ramp up the capacity to 30,000 doors per month in line with the supply agreement.

JSW, Liberty House and Tata likely to bid for Usha Martin steel business

At least three companies — JSW Steel, Tata Steel, and Liberty House — are understood to be evaluating a bid for Usha Martin, which is in the last lap of divesting its steel business.

Of the five companies in the fray, these three are potential bidders, source said. Bids are expected to be invited this month.

JSW is in the process of doing a due diligence, which is expected to be completed in a few weeks, said Seshagiri Rao, company’s joint managing director and group chief financial officer. Rao, however, clarified the company would evaluate a bid if it was a good opportunity.

A Tata Steel spokesperson said evaluating strategic growth opportunities was an ongoing activity. Liberty House declined to comment.

Usha Martin had put its steel business on the block to pare its debt, pegged at around Rs 45 billion. Sources close to the development said Arpwood Capital and SBI Capital Markets were given a joint mandate of finding buyers in June.

Thyssenkrupp's home state in favour of Tata Steel tie-up

The government of North Rhine-Westphalia, home to engineering and steel group Thyssenkrupp, has come out in favour of the group's planned merger of its European steel operations with those of Tata Steel.

"The potential merger with Tata is an opportunity to tie up with a strong partner in Europe," the state's Economy Minister Andreas Pinkwart, a member of the pro-business Free Democratic Party, said in a parliamentary session on Wednesday.

Members of the state's previous government, a coalition of the Social Democrats and the Greens, had voiced criticism over the planned merger, warning of a potential loss of influence over corporate decisions that could affect jobs.

Fearing that thousands of jobs could be cut as a result of a tie-up, unions have called on the new government to seek influence at Thyssenkrupp's largest shareholder, the Alfried Krupp von Bohlen and Halbach Foundation.

"The position that state intervention in corporate decisions is a no-go supports a strategy that is driven by financial markets, and the people are being let down," Knut Giesler at IG Metall, Germany's largest trade union, said.
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UK business transformation ongoing: Tata Steel

Indian steel giant Tata Steel on Tuesday said a "process of transformation" was ongoing to ensure a "viable future" for its units that remain under the company's ownership in the UK.

The company confirmed that discussions with British Steel Pension Scheme trustees and the UK Pensions Regulator will be concluded in the coming months.

"Tata Steel UK recently completed a consultation with its employees on proposals to structurally reduce risks in its wider UK business. It is also in discussions with the British Steel Pension Scheme trustees and the Pension Regulator to develop a structural solution for its UK pension scheme in the coming months," a company statement said.

"Tata Steel's UK business continues its process of transformation that is essential to create a viable future for its UK strip products business. Tata Steel's strip products business will continue to employ almost 8,500 people in the UK, manufacturing products for sectors like the automotive and construction industries," it said.

The latest on Tata Steel's UK business came as it announced the completion of the sale of its Speciality Steels business to UK-based Liberty House Group for a total consideration of 100 million pounds.

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