Jul. 11, 2018 - JSW Steel is looking to acquire smaller steel plants in India and overseas that produce specialized products, as it tweaks its acquisition strategy after missing out on some recent deals. Mr Seshagiri Rao, joint managing director and the group financial head of JSW Steel, said “After the recent setbacks, JSW Steel is now looking to focus on buying more niche, lower capacity plants which do not require huge investments to turn around.”
Mr Rao, referring to an upcoming round of auctions under India’s new bankruptcy law, during which a second wave of steel assets will be up for grabs, said “In the next round, our strategic thinking is to now focus on special product units that generally have a capacity of about a million tonnes.”
Rao said that JSW Steel is scouting for opportunities in the specialized steel segment that are dedicated to meeting specific customer demands. He did not name the prospective targets.
JSW Steel failed to outbid rival Tata Steel in March for bankrupt steelmaker Bhushan Steel and Bhushan Power. Earlier this year, JSW was beaten out by ArcelorMittal for Italian steel major Ilva SpA.
|JSW Steel revamps acquisition strategy after recent setbacks|