Metal magnate targets string of smaller steel buys in India
2020-08-24 12:00:42 [Print]
British metals tycoon Sanjeev Gupta is aiming to buy at least half a dozen smaller steel plants in India by 2025 after losing out on bigger purchases in the second-biggest producer.
GFG Alliance, owned by the commodities trader-turned-serial deal maker, had in the past bid for big-ticket stressed steel assets in India that were being sold under the country's ongoing bankruptcy process, but lost out to rivals. It recently snapped up Adhunik Metaliks Ltd. under the insolvency law and plans to start production at the 500,000 tons a year facility next month, establishing its presence in India.
"Since we were unable to acquire any big asset, we will instead go with the string of pearls strategy," and look to buy plants having capacities of 300,000-500,000 tons, which can be scaled to 2 million tons or more, Gupta said in an interview. "We would like to be at least 5 million tons in a short space of time."
GFG Alliance, owned by the commodities trader-turned-serial deal maker, had in the past bid for big-ticket stressed steel assets in India that were being sold under the country's ongoing bankruptcy process, but lost out to rivals. It recently snapped up Adhunik Metaliks Ltd. under the insolvency law and plans to start production at the 500,000 tons a year facility next month, establishing its presence in India.
"Since we were unable to acquire any big asset, we will instead go with the string of pearls strategy," and look to buy plants having capacities of 300,000-500,000 tons, which can be scaled to 2 million tons or more, Gupta said in an interview. "We would like to be at least 5 million tons in a short space of time."
