Tata Steel, NMDC join hands
Two of the biggest players in India, the biggest iron ore miner, NMDC and the biggest private steel maker Tata Steel, have joined hands to explore growth opportunities by setting up steel plants and acquiring mines.
Will it be a marriage made in heaven?
NMDC controls the biggest iron ore reserves in the country and Tata Steel is the biggest steel producer in the private sector in India.
They have come together to set up new steel plants in Jharkhand, Chhattisgarh and Karnataka.
Their proposed joint venture will also hunt for acquisition of iron ore assets in India and overseas. And Tata Steel may also get long-term iron ore supply contract from NMDC.
Well, similar bilateral MoUs and JVs have been signed between other companies in past, but without much success.
So, how do Tata Steel and NMDC plans to make this MoU not only work, but also deliver?
Rana Som, CMD of NMDC, said that there is a deadline of 6-8 weeks when a joint working group that is already formed, will submit the report and meanwhile if there is any opportunity, both the companies can work out the details.
So, what are the broad areas both the companies will work on?
“There are four broad areas—steel mills, mining exploration, acquisition and cooperation in technical areas,” Som said.
Meanwhile, NMDC is in an aggressive mode. The company is also in talks with Arcelor Mittal, the world’s largest steel producer and now its plans to tie-up with Tata Steel, is surely a strategy to transform into a leading player in the metals sector.
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