Tata Steel has decided to merge Neelachal Ispat Nigam Ltd (NINL) with itself to consolidate its long products business under a single entity and pump in $2 billion in its Singapore subsidiary to support its European business.
As part of the corporate restructuring process, Tata Steel will also buy out Manipal Hospital shares from a joint venture company, which operates a 100-bed hospital in Odisha’s Kalinganagar, dedicated to the employees of the company at the site.
The merger of NINL, which became a wholly owned subsidiary in July 2025, comes shortly after Tata Steel approved a 4.8-million-tonne capacity expansion of the long products maker which has a capacity of 0.98 mt at present.
Tata Steel had acquired a 93.71 per cent stake in NINL for ₹12,100 crore from a clutch of public sector entities as part of a divestment programme undertaken by the Centre
in 2012.
The company said the merger exercise will simply structure, enhance management efficiency, better facility utilisation, improve raw material security, rationalise
logistics cost and faster execution of projects in the pipeline.
With the acquisition of the steel complex of NINL, which is situated across Tata Steel’s Kalinganagar steel complex, the company had also got access to an iron ore mine having a 100 mt reserve.
With the merger, Tata Steel will now also be able to use the resource for its entire
operation.
Investment
The board of Tata Steel approved $2 billion in T Steel Holdings Pte Ltd (TSHP), a wholly foreign subsidiary of the company incorporated in Singapore on July 5, 2006. The primary business of TSHP includes holding of equity shares of indirect overseas subsidiaries of Tata Steel Limited and other entities.
Tata Steel Limited routes its investment into overseas businesses through TSHP. The investment will be made from FY27 onwards and will be used to support the overseas subsidiaries (including capex and restructuring costs) and for repayment/prepayment of existing debt.
One of the primary uses of the fund would be to support the construction of a new
electric arc furnace in Port Talbot, United Kingdom, where Tata Steel has committed to spend over £750 million.