Tata Metaliks, promoted by Tata Iron and Steel Company Ltd. and assisted by West Bengal Industrial Development Corporation, was set up together with Tata Korf Engineering Services as the technology consultant and KTS, Brazil as the technology supplier. The company was incorporated on 10th October 1990 as Tata Korf Metal, West Bengal and the name was changed to Tata Metaliks on 16th January 1992.
The company is engaged in manufacturing and sale of Foundry Grade pig iron and ductile iron pipes. Its manufacturing plant, located at Kharagpur in the state of West Bengal and Redi in Maharashtra consists of five Mini Blast Furnaces and related facilities including Captive Power Plants. The company commenced production in 1994 with an installed capacity of 90,000 tonnes of hot metal per annum. Since, then the company with the help of regular technological upgradation, increased its installed capacity with the same Mini Blast Furnance (MBF).
In the year 2000, the capacity was increased to 140000 tonnes of hot metal per annum and to 163000 tonnes in 2004. In 2005 company has successfully installed its second MBF of similar capacity i.e 162000 tonnes of hot metal per annum, taking the total capacity of the Company to 325000 tonnes of hot metal per annum. At present during 2005-2006 the company has an production capacity of 425500 TPA of Pig Iron.
The company has an agreement with Tata Korf Engineering Services for technical know-how and consultancy. The company came out with a public issue in May `93 to part-finance the project to manufacture 90,000 tpa of foundry grade pig iron. Tata Consultancy Services was employed by the company for carrying out an environmental audit study. It installed a power plant using blast furnace gas, to reduce the cost of power.
The company has programmed the first relining of its Blast Furnace during the year 2000-01 with an estimated cost of the project Rs.3.43 crores, which was financed from internal accurals. The campaign life of the Blast Furnace has exceeded six years, the highest ever achieved by any Korf Blast Furnace in the country.
In June 1999, the Total Productive Maintenance movement, or TPM as it is popularly called, was launched in the company with the objective of improving Overall Equipment Effectiveness, or OEE, and thereby improving machine availability, performance and product quality levels by minimising losses.
At Kharagpur the company`s administrative building was constructed with modern amenities during 2001-2002. An enterprise wide integrated information system SAP was implemented in partnership with Tata Technologies Ltd and the implementation of mysap.com was kicked off on 14th September 2001.
The company is awarded with Golden Peacock Awards, Environment Management Award 2003, National Quality Award, West Bengal Pollution Control Board Environment Excellence Award 2002, CII-HR Award for the years 2002,2003,2004, Udyog Ratan Award from the Institute of Economic Studies, New Delhi for the years 2003 and 2004, Greentech Environment Award and Pollution Control Award by the Government of West Bengal for the year 2003, Active Promotion Award in Tata Business Excellence Model for the year 2003, Highest Delta Award in Tata Business Excellence Model for the year 2003
During 2005-2006, the Company acquired the pig iron plant of Usha Ispat Ltd at Redi in Maharashtra. The Plant consists of Three Mini Blast Furnance taking the total Blast Furnance of the company to 5. The First furnance started operations on 10th February 2006. The second started operations in April 2006. The third furnance would require investments to make it operational. Once all 3 furnances become operational, the total production capacity of the company will reach 650000 TPA, which will be highest in the world.
The oxygen enrichment plant was set up in the Kharagpur unit on 2nd December 2005 at a project cost of 1.98 crores. The Board of the company has further approved the relining of MBF 1 at Kharagpur.
During April 2013, the Directors approved amalgamation of the Company with its holding Company i.e. Tata Steel Limited. The amalgamation scheme is subject to the approval of High Courts of Judicature at Calcutta and Bombay.
During the year 2017, the Company commissioned capital projects such as, capacity expansion of DI pipe plant to 200,000 tones by installing a new casting machine and a finishing line during Quarter 2; coke oven project on BOOT (Build Own Operate Transfer) basis having a capacity of 10,000 tones / month of BF grade coke during Quarter 3; 10 MW Captive Power Plant utilising exhaust flue gases from Coke Ovens during Quarter 3; and modernisation and expansion of Mini-Blast Furnace (MBF) - 1 in Quarter 4. These projects would have significant bearing on the operational efficiencies and volume growth in the years to come.
During the year 2017, the Company incurred capital expenditure to the tune of Rs 126 crores, which has been funded through internal accruals.
During the year 2017, the Scheme of Amalgamation between Company and its wholly owned subsidiary i.e. Tata Metaliks DI Pipes Limited (TMDIPL) with Tata Steel Limited was withdrawn due to multiple factors including inordinate delay in obtaining requisite regulatory and statutory approvals along with the significant dilution in the intended synergies that were initially envisaged. Subsequently, a fresh Scheme of Amalgamation between TMDIPL and the Company was filed with the Hon`ble High Court, Calcutta, aimed to realise greater benefits of financial, managerial, technical, distribution and marketing synergies between the entities to maximise stakeholder value. The said Scheme has received the approval of the Hon`ble High Court, Calcutta and became effective from 22 December 2016. Upon the effectiveness of this Scheme, the Company has two integral business segments i.e. Pig Iron and Ductile Iron Pipes - both structured as two separate divisions. Pursuant to the effectiveness of the Scheme, TMDIPL has ceased to be in existence as subsidiary of the Company.
The Non-Cumulative Redeemable Preference Shares of the Company aggregating Rs 100 Crore, which carried a fixed coupon rate of 8.5% p.a., were fully redeemed at par on its due date i.e. on 31 March 2018.
During the year 2018, the Company incurred capital expenditure of approx. Rs 60 Crore, which has been funded through internal accruals.The commissioning of the Pulverised Coal Injection plant (PCI) in Q4 has been a significant development both for increasing hot metal production as well as for reduction in hot metal cost during FY19.
During the year 2019, the Company issued and allotted Equity Shares and Convertible Warrants to the Promoter, i.e. Tata Steel Limited, on a preferential basis as follows: - (a) 27,97,000 Equity Shares at a price of Rs 642/- per share aggregating to Rs 179,56,74,000; and (b) 34,92,500 Convertible Warrants at a price of Rs 642/- per Warrant, with a right exercisable by the Warrant holder to subscribe for one Equity Share per Warrant of face value of Rs 10/- each, aggregating to Rs 224,21,85,000.
During the FY2020, the Company incurred capital expenditure of Rs 139 crore, which has been funded through internal accruals. The liquidity position got affected at the end of FY 2019-20 due to outbreak of COVID-19.
The Project on doubling of Ductile Iron Pipe capacity to 4 lakh tonnes is underway and is expected to be completed over the next couple of years though there could be some delays due to the COVID-19 pandemic.
The Board of Directors of the company in its meeting on 13 November 2020,approved the scheme of amalgamation of Tata Metaliks Ltd with Tata Steel Long Products Ltd(TSLPL),seeking to amalgamate and consolidate the business of the company into and with TSLPL.Read More