India Steel Market Watch
November 9: Essar Steel has appointed ICICI Securities & SBI Capital Markets as advisors to help identify and induct strategic/financial investors in the company.
This decision is in addition to previously announced plans to monetise certain non-core assets to raise equity and infuse additional funds for ramping up operations to full capacity, the company said in a statement.
Essar Steel India is one of India’s leading integrated steel producers with an annual pellet-making capacity of 20 mtpa and steel-making capability of 10 mtpa. Its state-of-the-art facilities comprise iron ore beneficiation, pellet making, iron making, steel making, and downstream facilities, including a cold rolling mill, a galvanising and pre-coated facility, a steel-processing facility, an extra-wide plate mill and 3 pipe mills with coating facilities. Sustainability has been given due importance and the company is on course to becoming a zero-waste company.
The global steel industry is facing major headwinds due to falling steel prices and increased exports from China. The effects of these are already being seen in North America, Canada and Europe. Major steel companies across the world are taking suitable steps to cut costs and raise money. India is no different and it is important that measures are taken now to maintain the long-term health of the steel industry. It is in this context that Essar Steel has taken a proactive decision to induct strategic/financial investors into the company, it said in the statement.