Jun 23, 2010 - Tata Steel is scouting for a strategic partner to sell stake in its subsidiary Tata Refractories, sources said. Tata Steel has appointed Enam to look for a refractory player to sell up to 50% stake in the company, Tata Refractories, in which Tata Steel owns 71.2% stake. Tata Refractories is valued at around Rs 800 crore.
Tata Steel is in talks with many international players for the deal. Ace Refractories, bought by France based Imerys is also said to be in talks for the stake buy. Tatas want the strategic partner to bring in technical expertise into the business and also give access to new markets to the refractory business.
Tata Steel stock ended up 0.79% at Rs 498.15/share on the BSE Stock Exchange on Tuesday's trade.
Currently, Tata Refractories is the largest player in India with over 50% market share. Tata Steel wants to increase the global footprint of the company for which it is hunting for a partner to add value to its business. For Tata Steel, the refractory business is key to the blast furnace operations and in the long run the company wants it to cater to the Indian operations as well as Corus.
Tata Steel declined to comment on an e-mail query sent by ET Now. Tarang Bhanushali, Research Analyst at IIFL said, "It may not impact the financials of Tata Steel immediately but the strategy is going to be positive in future."
Tata Steel is in talks with many international players for the deal. Ace Refractories, bought by France based Imerys is also said to be in talks for the stake buy. Tatas want the strategic partner to bring in technical expertise into the business and also give access to new markets to the refractory business.
Tata Steel stock ended up 0.79% at Rs 498.15/share on the BSE Stock Exchange on Tuesday's trade.
Currently, Tata Refractories is the largest player in India with over 50% market share. Tata Steel wants to increase the global footprint of the company for which it is hunting for a partner to add value to its business. For Tata Steel, the refractory business is key to the blast furnace operations and in the long run the company wants it to cater to the Indian operations as well as Corus.
Tata Steel declined to comment on an e-mail query sent by ET Now. Tarang Bhanushali, Research Analyst at IIFL said, "It may not impact the financials of Tata Steel immediately but the strategy is going to be positive in future."
