VISA Steel Limited and Baosteel Resources Co. Ltd., China have amalgamated their Joint Venture Company, VISA Bao Limited with VISA Steel Limited. Consequent to the amalgamation, Baosteel will hold 5% stake in VISA Steel. This development comes after the earlier merger between VISA Steel and Baosteel in 2008 of a Ferro chrome plant in Odisha, in which VISA Steel holds 65% stake and Baosteel holds 35% stake.
[su_note note_color=”#c2d6e9″ text_color=”#0b0a0a”]Commenting on the announcement, Mr. Vishal Agarwal, Vice Chairman & MD of VISA Steel said, “The amalgamation of VISA Bao with VISA Steel will make VISA Steel one of the largest Ferro Chrome producers in India. The integration will improve the operational and cost efficiency of the Ferro Chrome business.”[/su_note]
The VISA Steel facilities are located at Kalinganagar Industrial Complex in Odisha, which includes a 180,000 TPA Ferro Chrome Plant with 75 MW Captive Power Plant, along with a fully Integrated 0.5 million TPA Special Steel Plant, and 0.4 million TPA Coke plant.
Visa Steel is going to be the largest Ferro Chrome producer in India without captive Chrome Ore mines. From the last Financial Year there has been a dearth of raw material supplies, as producers without captive mines are totally dependant on Odisha Mining Corporation Ltd. for the raw material. In FY15 India could utilize only 40% of its Ferro Chrome capacity, since availability of Chrome ore is very uncertain and the price is also exorbitant.
|
HC Ferro Chrome Installed Production Capacity in India (Quantity in MT) |
|
|
Company |
Capacities |
| IMFA |
243,000 |
| FACOR |
86,000 |
| Tata Steel |
114,000 |
| Balasore |
201,000 |
| JSL |
172,000 |
| IDCOL |
14,000 |
| Nav Bharat |
54,000 |
| Vasavi |
56,000 |
| Visa Steel |
180,000 |
| Others |
98,000 |
| Total |
1,218,000 |
Source: SteelMint Research
Leave a Reply