JSW Steel eyeing acquisitions in India and abroad: MD Seshagiri Rao
New Delhi: JSW Steel is looking to have a 40 million tonnes steel capacity and exploring opportunities to acquire assets in India and abroad, its joint managing director Seshagiri Rao said on Tuesday.
“Our mission is to become a 40 MT steel company and also we want to explore downstream units not only in India but abroad also. We have been examining various targets...The company has been exploring opportunities. We have been examining various opportunities overseas,” Rao, who is also the chief financial officer of the JSW Group, told PTI.
The Sajjan Jindal-owned JSW Steel is in talks with Algeria’s Cevital Group to acquire its Aferpi steel mill in Italy for $100 million, according to people familiar with the matter. However, when asked about the development with regard to Italian mill acquisition, Rao said, “It is very very difficult to comment at this stage. Nothing is final.”
Rao further said, “We will continue to evaluate (various proposals of acquisition) and if the opportunity is right, then we will take call.” He said the company in the past had done some acquisitions of iron ore mines and also plate and pipe mill and was not averse to good proposals.
JSW Steel, the flagship company of JSW Group, is India’s leading primary and integrated steel producer and has a production capacity of 18MTPA with plants located across six locations in South and West India, namely, Karnataka, Tamil Nadu and Maharashtra.
The private steel maker had earlier tried to acquire the mill in 2014, when it was known as Lucchini. The Algerian conglomerate Cevital, however, acquired Lucchini and renamed the it Acciaierie e Ferriere di Piombino (Aferpi). Aferpi’s activity involves production of a wide range of quality and special steels, with different shapes and sizes for rails, wire rod and bars for railway, automotive, earthmoving vehicles, energy, fastening, springs and welding.