Tata Steel plans to put some of its global assets on the block with the rising supplies from China and adverse currency movements hurting profits.
Cyrus Mistry, Chairman of Tata Steel, said while the company is taking measures to make the UK business more sustainable, there are challenges due to adverse movement of the pound versus the US dollar and the euro.
“The unrelenting Chinese imports into the UK may force Tata Steel to undertake further asset right-sizing in the near future,” he noted.
The company also plans to raise ₹10,000 crore through sale of securities and sought shareholders approval for the same. The sale of securities could be in the form of a private offering in the domestic or international market or through issue of shares, bonds, debentures and warrants.
AGM on August 12 Tata Steel net debt was at ₹70,452 crore (₹70,236 crore) as of March 2015. The company's annual general meeting is scheduled for August 12.
The company has operations in 26 countries and commercial presence in over 50. It employs 80,000 people across five continents.
Tata Steel UK has a high number of pensioners compared with active employees and is in discussions with the unions to create a sustainable pension arrangement.