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JSW Steel eyes distressed downstream assets

14 November, 2018 12:35 PM
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JSW Steel eyes distressed downstream assets

The move complements its strategy to increase share of downstream products in its portfolio

JSW Steel is training its eyes on downstream assets as it looks at the next round of companies that have been referred to the insolvency courts.

The move complements its strategy to increase the share of downstream products in its portfolio as it increases capacity in the coming years.

The Sajjan Jindal-company has already acquired Monnet Ispat from the present list of defaulting companies who were referred to the National Company Law Tribunal. Separately, the company continues to be in the reckoning for Bhushan Power & Steel.

Now with the big companies off the list - and with ArcelorMittal chosen as the preferred bidder for Essar Steel - JSW Steel is looking at the remaining options.

"Today what is left (in the insolvency courts) are companies that either of smaller size or downstream. So, we are particularly evaluating downstream side more intensely than the integrated side," said JSW Steel Joint Managing Director and Group CFO Seshagiri Rao.

JSW Steel has submitted Express of Interest for Uttam Value Steels and Uttam Galva Metallics. Both companies make specialised products that cater to sectors such as consumer goods and auto.

Additional downstream assets will add to the company's plan to increase the share of specialised and value-added products in its overall product portfolio.

At present, 35 percent of the company's output comprises downstream products.

We would like to maintain the proportion as we expand capacity from 18 million tons per annum today to 25 million tons by 2020, said Rao.

Source: moneycontrol.com

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