Tata – Corus, takes India to Global Map October 23, 2006
Posted by Manik Kinra in Uncategorized.trackback
I know i am coming late on the topic, but still just felt like taking views on the same especially after yesterdays news wherein there were claims of Tata feeling the pinch of Debt they have taken to acquire Anglo-Dutch Giant Corus.
Just a brief on the deal, TATA Steel was 65th largest steel company across the globe, with CORUS being placed as 9th largest. Tata Steel acquired Corus at 7.6 Billion dollars (4.8 Billion Pounds), and the amount will be coming from the NAT Steel, their wholly owned UK subsidiary. The remaining would be divided between the Singapore Subsididary and Indian Arm. This would also take the employee strength to 90,000
Emotionally this seems like a dream come true for Tata’s with their net worth reaching 5th (amongst Steel Majors) in the world. But would they be able to manage the debt they have undergone for buying Corus and more importantly will this acquistion be a success. With such a huge no. of people on the rolls, Employee Management becomes another major issue?Will Tata be able to come through it or will it bundle under pressure – Now this would determine actual strength of Tata’s and to larger extent the so called Indian MNC’s.
Lets hope for the best though!
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