Tata Steel, pursuant to the Definite Agreement signed on January 15, 2007, has acquired 100 per cent of equity stake in Rawmet Industries Private Limited (Rawmet), a company having its registered office at Kolkata, at an enterprise value of Rs101 crore. This is the second 100 per cent acquisition by Tata Steel in Orissa. In September 1991, Tata Steel took over the ferro-alloy plant in Bamnipal.
Rawmet has a ferro-alloy plant near Cuttack, consisting of two 16.5 MVA semi-losed electric arc furnace having a capacity of producing around 50,000 tonne per annum of high carbon ferro chrome. The board of Rawmet has been reconstituted with nominees of the company. The new board consists of five directors, out of whom four are nominees of Tata Steel.
Prior to this, Tata Steel had taken over the ferro-alloy plant in Bamnipal in Jajpur district, which was considered as one of the first successful disinvestment. In September 1991, Tata Steel took over the then 'sick' unit for Rs156 crore from erstwhile OMC Alloys. The plant has now surpassed its installed capacity of 50,000 TPA.
The new feather in Tata Steel's cap is yet another step to further strengthen the 100-year relationship between the state and the company.