ArcelorMittal eyes Bhushan Steel to gain a foothold in the Indian market
Global steel giant, ArcelorMittal has evinced interest in buying debt-laden Bhushan Steel, which has been referred by the Reserve Bank of India (RBI) for liquidation under the Insolvency and Bankruptcy Code (IBC), reports The Economic Times.
Banking sources told the newspaper that the company, controlled by billionaire Lakshmi Mittal, has submitted an expression of interest (EoI) for Bhushan Steel.
The company had previously shelved a plan to set up a greenfield steel project in Odisha due to delay in land acquisition and allocation of iron mines.
Cheaper imports and global overcapacity has hampered the profitability of Indian steel companies as five companies from the original 12 companies referred to National Company Law Tribunal (NCLT) the RBI are steel companies.
Still, with India being the fastest growing steel market in the world, ArcelorMittal wants to leverage the growing demand for auto-grade steel in India, which mostly comes from Japan and South Korea.
Bhushan Steel’s capacity stands at 5.6 million tonnes, with a debt of Rs 44,478 crore with a significant presence in auto steel categories. ArcelorMittal sees an opportunity to gain a foothold in the Indian steel industry which is available at reasonable price.