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Mr Ratan Tata saving British Steel at the cost of Tata Steel India ¨C Mr Wadia- The 18th China£¨Guangzhou£©Int¡¯l Sheet metal machinery,Forging, Stamping and Setting Equipment Exhibition
12/15/2016 sheet metal expo |
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Times Of India reported that in his first letter to Tata Steel shareholders defending his position as an independent director, Mr Nusli Wadia attacked Ratan Tata for ''destroying'' the tradition built by JRD Tata and working to save British Steel. He said that "Ratan Tata is trying to save British Steel (Corus/Tata Steel Europe) by deploying huge resources at the cost of Tata Steel India."
Mr Wadia emphasised that he had differed strongly with Ratan Tata regarding the buyout of Corus, as his view was that Tata Steel was best served by expanding in India.
Mr Wadia said he had also differed strongly in providing continuous financial resources to Corus since 2012. "From that date to now, the capital employed in the business has risen by about Rs 25,000 crore with nil return," he wrote. As a result, Tata Steel has lost its premier position in India.
Mr Wadia believes that the situation in Corus is likely to further deteriorate and impair Tata Steel''s Indian operations. He said that "It is not the role of your company to save jobs in the UK nor to support its pension funds. The role of your board is to apply your funds to the most profitable growth opportunities...better served by investing in India where the returns are better."
Mr Wadia believes that any return on investment to shareholders of Tata Steel from its investment in Corus looks "a near impossibility". He added that "The shareholders of Tata Steel have already suffered a serious impairment of about Rs 35,000 crore and are likely to have further write-downs in the future.¡±
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The 18th China£¨Guangzhou£©Int¡¯l
Sheet metal machinery,Forging, Stamping and Setting Equipment Exhibition
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