Rs 600 cr buy steels up Essar | business | Hindustan Times
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Rs 600 cr buy steels up Essar

Essar Steel Ltd, the privately held flagship of the Shashi and Ravi Ruia’s Essar Group has entered into a definitive business transfer agreement with the Ajmera group to acquire the assets and steel business of Shree Precoated Steel to broadbase its product offerings.

business Updated: Aug 05, 2009 00:44 IST
HT Correspondent

Essar Steel Ltd, the privately held flagship of the Shashi and Ravi Ruia’s Essar Group has entered into a definitive business transfer agreement with the Ajmera group to acquire the assets and steel business of Shree Precoated Steel to broadbase its product offerings.

The deal is to be completed in 60 days subject to regulatory approvals.

On completion of the acquisition, Essar Steel will have the largest cold rolling capacity of 2 million tonnes and the largest galvanizing capacity of one million tonnes in the country.

Essar is not acquiring the company but only its assets valued at Rs 600 crore and taking over the long-term loan liabilities of Rs 175 crore.

The acquisition makes Esser Steel the country’s only steel plant with integrated facilities from heavy plates, hot rolling, cold rolling, galvanizing and colour coating with a full distribution business.

Essar Steel CEO J Mehra told reporters that the deal was strategic.

“This acquisition fits for our steel business as this gives us leadership position in many product segments and also give us a foot print in different product segments. It would consume half a million tones of steel from our Hazira plant and would also give us market access to the west and south of India,” Mehra said.