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JSW Steel agrees to buy Welspun Maxsteel for over $163 million

India TV Business Desk 19 Aug 2014, 10:43:03 AM IST
India TV Business Desk
New Delhi: India's third-largest steelmaker JSW Steel Limited has decided to acquire Welspun Energy Ltd's entire stake in sponge iron firm Welspun Maxsteel Limited for an enterprise value of RS 1,000 crore, along with net current assets, according to a statement.

Welspun Maxsteel has an installed capacity of 0.9 MTPA at the gas-based DRI plant, with a captive jetty and a captive railway siding.

“This acquisition is value accretive to JSW Steel due to synergies in supplying surplus pellets to Welspun MaxSteel and use of DRI from WMSL in company's steel-making operations at Dolvi plant,” Seshagiri Rao, Joint MD & Group CFO, JSW Steel, said in the statement.

JSW Steel's output at the10 MTPA plant at Vijayanagar in Karnataka is suffering due to shortage of coal because of the mining ban in the state to curb illegal mining. Thus, capacity augmentation at Dolvi will boost supplies to the western and northern markets.