Mittal, steel tycoon
in India -Worried
Tatas in Steel Sector
UK, July 04, 2006
NRI, Lakshmi Mittal,
London-based steel magnate with a fortune
worth 14.8 billion pounds, richest Asian in Britain
will arrive in New Delhi on July 7 to review his India
plans, just days after reaching a $33 billion agreement
to merge Mittal Steel with its nearest rival Luxembourg-based
Arcelor to create the world's largest steel with a
capacity of 120 million tonnes.
Mr. Mittal has very keen
interest in India and its booming economy, which would
provide an excellent platform for his expansion plans.
He is also interested in India's hydrocarbon sector
and may take this issue with meeting Prime Minister
Manmohan Singh and Petroleum Minister Murli Deora.
Now Tata Sons of Tata Steel, plans to
raise its stake in the company to 33 per cent to prevent
takeovers. Tata Steel, which recorded Rs 3,700-crore
in FY 06, like to raise Rs 6,500 crore within the
next few months for further expansion. Tata group
chief Ratan Tata told shareholders at the company's
99th AGM here on Wednesday and will be investing Rs
1,300 crore and after the 10 per cent preferential
issue, Tata Sons holding in Tata Steel. This will
increase to 33 per cent from the present level of
26 per cent. Tata also announced a Capex of Rs 70,000
crore over the next ten years to make Tata Steel a
30 million tonnes per annum company.
This is great news for India because NRIs are taking
a great intest in manufacturing area. India is too
behind in manufacturing area. IT is the only service
industry that cannot make India shinning.