Tayo Rolls has made reference to the Board for Industrial and Financial Reconstruction under the Sick Industrial Companies Act, equivalent to Chapter 11 in the USA, mainly due to its fragile cash position and its persistent quality issues which it has not been able to fix.
The expectation is that it will decide to cease operations and declare bankruptcy at the board meeting on May 26. It was verified that Tayo has stopped taking any new orders and is only continuing to operate to complete its current orders for Tata Steel and JSW Steel. It is reported by insiders that the entire manufacturing site in East Singbhum would be reconverted into the steel cold rolling mill.
The shutdown of Tayo Rolls will remove supplies of approximately 7,000 tons of cast rolls and 1,000 tons of forged work rolls from the market, of which almost 90% is supplied to the domestic market in India.