Tata Steel Advanced Materials (TSMAL), an indirect wholly owned subsidiary of Tata Steel, has executed a share purchase cum shareholders' agreement for acquisition of 90% equity stake in Ceramat (CPL).
Ceramat was incorporated on 2 November 2021, for the purpose of advanced ceramics with health care focus. CPL is jointly promoted by Sabyasachi Roy and Tushar Gothi. As of date, CPL has not commenced operations.Sabyasachi Roy is a ceramic technologist and an entrepreneur and Tushar Gothi has been associated with ceramic business for 16 years.
CPL promoters have the core competence of various oxide ceramic composition manufacturing through process routes like slip casting, gel casting, powder compaction, spray drying and vibro-casting instrumental in advanced ceramics manufacturing.
Tata Steel has identified advanced ceramics as one of the new materials for strategic growth. Within advanced ceramics, the first sector of choice is in medical materials owing to high growth potential and non-cyclical nature.
Tata Steel aspires to setup a world class facility to produce medical materials and use CPL as a special purpose vehicle for this purpose. The facility shall focus on producing hydroxyapatite - a calcium phosphate-based ceramic used as bone replacement. The promoter of CPL are amongst the very few with such proven capability.
The steel maker would be acquiring 90% equity shares of CPL for Rs 90,000.
Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 34 million tonnes per annum.
The company's consolidated net profit soared 139.3% to Rs 9,598.16 crore on a 45.9% jump in net sales to Rs 60,524.72 crore in Q3 December 2021 over Q3 December 2020.
The scrip surged 6.61% to end at Rs 1220.90 on Monday. The domestic stock market will remain shut today, 1 March 2022, on account of Mahashivratri.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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