Only recently JSW Steel has announced its plans to pump in INR 5,000 crore to strengthen its downstream manufacturing capacity and has also decided to bid for all the stressed downstream assets in future with the focus on evaluating their worthiness at the final stage.
In line with agenda, JSW Steel has shown initial interest in the debt-laden Asian Colour Coated Ispat (ACCI) that is currently undergoing insolvency resolution. According to the reports, while JSW Steel has submitted EoI (Expression of Interest) for the same other companies that have also lined up for the asset are Liberty House, JM Financial Asset Management, India Resurgence Fund, Aion Investments as well as Kotak Mahindra Bank.
In February this year, the National Company Law Tribunal (NCLT) had issued the notice to ACCI in a plea by State Bank of India, leader of its lenders’ consortium, for initiating insolvency proceedings over INR 3,900 crore default. ACCI is one of the corporate debtors identified by Reserve Bank of India in August 2017.
The company has 3 lakh tonnes capacity in making cold rolled, galvanised and colour coated steel products that find use in the automobile and engineering sectors as well as in the making of white goods. The company is headquartered in Haryana.
Jayant Acharya, Director Commercial – Marketing and Strategy, JSW Steel has recently said in an interview that the company will “reduce focus in commodity space and enter into alloy steel and special steel space to make the business more sustainable in the long term. Our aim is to look at more and more de-competitive business segment as a key indicator of focusing more on special steel categories”.
Company’s Joint MD Seshagiri Rao told to PTI that as part of its effort to ramp up downstream capabilities, JSW Steel will also pursue stressed downstream steel assets that will come up for bidding in the next round.
The company expects special steel products to contribute 40% of its future volumes while customisation products will add the rest 60%. “We are not going to produce the commodity. Basis our very customised steel portfolio and high-end value-added product mix, the business will become less volatile,” Rao has said.
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