Tata Steel is eyeing synergies with Usha Martin's Jamshedpur facility

The deal would give Tata Steel an opportunity to consolidate its presence in iron ore and coal sector in Jharkhand and leverage its mining capabilities

Tata Steel, which pipped four others to a definitive agreement for Usha Martin’s steel business, is eyeing synergies with its Jamshedpur facility.

The Usha Martin unit is located in Adityapur, which is near Jamshedpur. “The proximity of the plant to our existing steel works in Jamshedpur brings in significant synergy in logistics of supply of raw materials, especially intermediary steel products,” said a Tata Steel spokesperson. Tata Steel’s Jamshedpur facility has a capacity of around 10 million tonnes. 

While most other companies in the fray were discussing an offer in the range of Rs 35 billion, Tata Steel offered a