Tata may bid only for Essar Steel's Hazira plant

2017-10-10

Tata Steel Ltd has expressed preliminary interest in acquiring debt-laden Essar Steel Ltd’s Hazira plant in Gujarat. The Hazira facility constitutes more than 80% of Essar Steel’s operations, while the rest of the facilities are largely for raw material processing, in which Tata Steel sees no value since it already has its own facilities.”

Apart from the Hazira plant, Essar Steel operates a downstream capability hub in Pune, beneficiation plants in Bailadila (Chhattisgarh) and Dabuna (Odisha) and pellet manufacturing plants in Visakhapatnam (Andhra Pradesh) and Paradip (Odisha).

While the bankruptcy resolution plan of Essar Steel has not yet been finalized, the interim resolution professional (IRP) for the steelmaker appointed by the National Company Law Tribunal (NCLT) has received initial interest from at least four potential buyers—two domestic and two foreign. The IRP belongs to turnaround advisory firm Alvarez and Marsal.