According to the latest reports, Mukand Group which is headquartered in Mumbai, Maharashtra has unveiled its plans to invest INR 750 crore in Southern India in order to raise steel-making capacity to meet the increasing steel demand from automobile and engineering sector.
This plan includes setting up of INR 650 crores steel plant in Hospet, Karnataka via its subsidiary Mukand Sumi Special Steel which is a joint venture with Japan’s Sumitomo Corporation.
Japan’s Sumitomo Corporation has acquired 49% stake in Mukand Sumi Special Steel for INR 1,181 crore in May 2018. Mukand Ltd owns 51% equity in the joint venture company.
This joint venture has 100 acres of land adjoining Mukand’s Group existing plant at Hospet and is proposed to be used for the construction and commissioning of new steel rolling facility. The plan is expected to be executed by mid-2020.
Mukund Sumi Special Steel is already engaged in the business of rolling, finishing and marketing of alloy steel wire rods and bars made from blooms and billets procured exclusively from Mukand’s Hospet plant in Karnataka.
Mukund Group’s INR 750 crore plan also includes INR 150 crore for removing bottlenecks at its existing unit at Hospet as the company is gearing up to cater to growing demand for speciality steels from automotive and engineering clients.
The combined manufacturing capacity of Mukand Group from its facilities at Thane, Maharashtra, and Hospet, Karnataka is 6 lakh tonnes per annum of special and stainless steel long products.
Indian asks Japanese and South Korean firms to make investments in India’s high-grade auto steel
As per the recent reports, India has requested Japanese and South Korean steelmakers to step up their investments by building new plants in the country to produce high-grade automotive steel.
India mainly imports the high-tensile steel from Japan and South Korea. However, demand for the auto-grade metal is rising in India as companies such as Hyundai Motor Co will ramp up their production to make the country a manufacturing and export hub for small cars.
The Indian government has also decided to encourage Japanese and South Korean companies to start greenfield projects in the country.
The automotive sector in India has also grown rapidly in FY18 and is expected to continue to expand for several years. According to the market reports, the auto component sector in India is about INR 3 lakh crore industry, currently exporting products worth INR 74,000 crore a year, and is a major success of the ‘Make in India’ programme.
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