Tata Steel Europe is in crisis due to the world-wide low connectivity during the pandemic days, India as its parent company may stand on its side and compensate.
The company in Europe hits the inflexion point as the Indian parent informed the British government that it won’t be able to fund the losses in the UK. But Tata Group Chairman N Chandrasekaran says that the present economic crisis may force the steelmaker to compensate for heavy losses in Europe.
Tata Steel posted a steep consolidated net loss of Rs 4,609 crore in the April-June quarter because of the bleeding UK business. The Indian entity reported a profit of Rs 1,193.27 crore in the first quarter, despite the lockdowns.
The management of Tata Steel is left with limited options to turn around its sick European business. N Chandrasekaran at the company’s annual general meeting (AGM) had said the company simplified the structure in Europe by reducing the number of subsidiaries to 151 from over 300. He added the management is actively involved in finding a sustainable and structural solution in Europe.