Tata Steel sells Sri Lankan unit for Rs. 20 cr
Tata Steel has divested its entire stake in Lanka Special Steels to EB Creasy and Company Plc for 433 million Lankan rupee (about ₹20 crore) in an all-cash deal.
Lanka Special Steel, a wholly-owned subsidiary of Tata Steel, is involved in the business of manufacturing and supplying hot dip galvanized wire and nail wire.
It has an installed capacity of 14,400 tonnes a year and annual turnover of LKR 1,569 million (₹74 crore) in FY-14.
Headquartered in Sri Lanka, EB Creasy & Company is engaged in logistic business, consumer goods manufacturing, automotive business, ‘home and industrial’ business, and renewable energy business.
As part of restructuring to bring down debt and reduce finance cost, Tata Steel has been exiting from its non-core and non-profitable ventures in the last few months.
The company sold its five per cent stake in the Carborough Downs joint venture in Australia for AUD 6.9 million (₹33 crore) to Vale as part of the Group’s ongoing financial initiatives to strengthen the balance sheet.
Late last year, Tata Steel signed a memorandum of understanding with the Geneva-based Klesch Group for the potential sale of its long products business in Europe and associated distribution activities. With production capacity of about five million tonnes of long products such as billets, wire rods and rails, the division accounted for 25 per cent of Tata Steel’s European operations.
Tata Steel UK Holdings had refinanced its bank debt through term loan and revolving credit facilities of €3.05 billion. The debt was originally incurred in relation with the acquisition of Corus Group Plc in 2007.
Outlook neutral for aluminium; copper may dip below $6,000
LME aluminium looks neutral in a range of $1,780-$1,805 a tonne, and an escape will point a direction.
The range has been formed by the 23.6 per cent and the 61.8 per cent Fibonacci projection levels of an upward wave C, the third wave of a presumed three-wave cycle developed from March 12 low of $1,745.
A break above $1,805 could confirm the extension of the wave c towards $1,830, the 100 per cent projection level, while a break below $1,780 may cause a further loss to $1,765.
The bias could be towards the upside.
Drop from March 26 high
LME copper may fall into a range of $5,932-$5,958 a tonne, as indicated by a Fibonacci ratio analysis.
The drop from March 26 high of $6,294.50 seems been controlled by various supports and resistances, derived respectively from a Fibonacci retracement and projection analyses.
The projection analysis reveals a support at $6,005 and a resistance at $6,096, respectively the 61.8 per cent and the 76.4 per cent levels, while the retracement analysis on the rise from March 18 low of $5,621.50 to $6,294.50 reveals another support at $6,037, the 38.2 per cent level and the resistance at $6,136, the 23.6 per cent level.
Even though the drop from $6,294.50 has adopted a complex mode, it seems to be incomplete, as it may extend either to $5,958, the 50 per cent retracement, or to $5,932, the 50 per cent projection level.
A break above $6,096 trigger a limited gain to $6,136.
PM: India should aim to emerge top steel producer ahead of China
“India has surpassed the US in steel production but is still far behind China. We need to beat China as we cannot afford to lag behind anyone when it comes to ‘Make in India’,” Modi said at a public rally after dedicating the modernised Rourkela Steel Plant (RSP) to the nation.
With an investment of around Rs. 12,000 crore, the production capacity of the upgraded steel plant will go up to 4.5 million tonnes annually from 2 million tonnes currently.
RSP is one of the five integrated steel plants of public sector steel major Steel Authority of India Ltd (SAIL). Modi is the second PM after Pandit Jawaharlal Nehru to visit this plant, which is also known as ‘Industrial Konark’.
SAIL is currently undertaking an expansion-cum-modernisation plan at all its plants and mines. With an investment of over Rs. 72,000 crore, this project is expected to be completed in September and will take the annual production capacity to 23 million tonnes from 13 million tonnes currently. With SAIL and all the public and private sector companies, total production capacity in India has reached around 100 million tonnes, while capacity in the US is around 90 million tonnes, and in China over 1,100 million tonnes.
With over one lakh people attending the rally, Modi said once again that eastern States should take a leap along with the Western regions. The eastern States comprise Bihar, Odisha, Jharkhand, West Bengal, along with North-Eastern States, while Gujarat, Maharashtra and Goa are the Western states with high growth rates.
Talking about key initiatives taken during the last one year after his election rally here on April 4 last year, the Prime Minister said decisions on enhancing royalty on minerals, successful coal block auction, and higher share in tax revenue are some of the important decisions. Implementation of recommendations given by the 14th Finance Commission will give Rs. 25,000 crore to Odisha in the new fiscal as against Rs. 18,000 crore in 2014-15, he said.
Terming coal as diamond, he said the Government has successfully managed to get around Rs. 2 lakh crore by auctioning just 20 of the 204 blocks cancelled by the Supreme Court. Now this money will go to States such as Odisha, Jharkhand and Chhattisgarh beside others, he said, as the coal blocks were in these States only.
Use of mineral resources
The Prime Minister said India has huge potential in the steel sector, which is also linked to national security and defence issues. “We have huge resources and minerals and instead of exporting raw material, we can do value addition here to sell quality products in the global market,” the PM said.
He said India was also focusing on manufacturing warships and Rourkela Steel Plant and its employees had contributed significantly in this direction. The special steel manufactured here was being used in tanks used by the Army, he said. Describing the city as the town which has given India the strength of steel, he said RSP plays a key role in the nation’s defence.
The Prime Minister said the world was looking at India again with optimism. He invited investors from across the world to invest in India. “Return on investment here is higher than in any other country,” he claimed.
BHEL commissions second 800 MW boiler at Krishnapatnam
“This is the second 800 MW rating indigenous boiler to be commissioned in the country. The first 800 MW boiler was commissioned earlier by BHEL at the same project, last year,” BHEL said in a statement today.
BHEL’s scope of work in the project envisaged is expected to comprise manufacturing, supplying, erecting, testing and commissioning of the boilers and associated auxiliaries.
The key equipment for the project, has been manufactured by BHEL at its Trichy, Hyderabad, Ranipet and Bengaluru plants, construction of which was undertaken by the company’s Power Sector – Southern Region.
Shares of BHEL were trading at Rs 232.40, down 1.09 per cent on the BSE.
This post was written by Atlantic Admin