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Steel Wars: India’s Biggest Steel Makers Prepare To Bid For 9.9 Million Tonnes Of Additional Capacity
Swarajya Staff
Nov 17, 2017, 01:48 PM | Updated 01:48 PM IST
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The Indian steel industry is going through a round of massive consolidation - thanks to three major producers struggling to resolve long-standing debt with banks. Over 9.9 million tonnes of steel production capacity will soon be brought to auction, and existing producers are vying to pick up additional capacity in short time. With lenders taking nearly 50 per cent hair cuts on these assets and related liabilities bidders would find that extra capacity may in-fact be available at reasonable prices.
Among the existing players, JSW Steel Works intends to bid for Bhushan Steel, Bhushan Steel & Power, Monnet Ispat and Jaypee Infratech. The company is beefing up its war chest to take on other bidders by talking to private equity players such as Aion Capital and Piramal Bain Credit among others to bring in additional equity.
Existing players such as Tata Steel and Vedanta are keen on bidding for Bhushan Steel making the auctions more interesting. The auctions might heat up, even more, should overseas players such as ArcelorMittal, with their cheap access to funds, also enter the fray. Bhushan Steel, Bhushan Steel & Power, Monnet Ispat and Jaypee Infratech together owe Rs 1,09,000 crores to banks.
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