The timing of Corus buy was not right, Tata Sons Director J J Irani said today about the $12-billion acquisition that catapulted Tata Steel to the world’s sixth-largest steel manufacturer.
“It was a big inorganic step, which increased our production fourfold. But nobody knew that steel prices will collapse like this,” said Irani, a board member of Tata Steel, on the sidelines of a seminar, organised by the Confederation of Indian Industry.
Tata Steel acquired Corus in early 2007, when steel prices were on an upside. The economic slowdown followed soon after and prices crashed by more than half. “We are now left with a huge debt. But we have a plan. The situation should get better in the next two-three years. But a lot will depend on steel prices and the European markets,” said Irani.
