Stressed assets buying could change the steel mill ranking in India
The largest steelmaker in the country, JSW Steel, is aggressively ramping up capacity to retain top slot, while the number three player, Tata Steel, too, has its agenda set to spring back to its earlier leadership position. The race has heated up even as the Reserve Bank of India (mandated insolvency process has gained speed for five other majors in the sector Essar Steel, Bhushan Steel, Bhushan Power & Steel, Monnet Ispat & Energy, and Electrosteel Steels. An acquisition of any of the assets like Bhushan Steel with a capacity of 5.6 million tonnes or Essar Steel at 10 million tonnes could change the pecking order of the industry.
At present, JSW Steel with a capacity of 18 million tonnes is at top, followed closely by public sector steel major, Steel Authority of India with a capacity of 17.5 million tonnes. Tata Steel has a capacity of 12.7 million tonnes.
By the end of the year, however, SAIL is expected to complete its expansion and modernization program at the Bhilai steel plant, which will take its capacity to 21.3 million tonnes. No further expansion has been announced by SAIL.
But, JSW Steel and Tata Steel are both ready to cash in on the opportunities in the domestic market.
Source : Business Standard