ArcelorMittal India’s Entry: Domestic Steel Firms Say More Players In Market To Spur Innovation
ArcelorMittal expects to complete the acquisition of the debt-ridden Essar Steel by the end of this year.
Presence of more companies in the market will lead to more innovation, quality and research and development activities, said domestic steel players on Thursday while reacting to the entry of global steel giant ArcelorMittal in India.
"We don't see ArcelorMittal as a challenge," JSW Steel Ltd. Chairman Sajjan Jindal on the sidelines of the ISA Steel Conclave in New Delhi.
More the number of players, more the R&D activities, innovations, quality in the market, he added reacting to a question how will the ArcelorMittal's entry benefit the consumers. Jindal Steel & Power Ltd. Chairman Naveen Jindal said, "We see its (ArcelorMittal's) entry as a positive step."
Tata Steel Chief Financial Officer Koushik Chatterjee also said there should be competition in the market.
Steel Authority of India Ltd. Chairman AK Chaudhary said, "ArcelorMittal's entry will promote healthy competition in market." The industry looks forward to work with them in future, he added.
Last week, the Supreme Court paved the way for ArcelorMittal's takeover of debt-ridden Essar Steel for Rs 42,000 crore and set aside the July 4 National Company Law Appellate Tribunal order giving equal status to financial creditors and operational creditors.
Following the verdict, ArcelorMittal said it expects to complete the acquisition of the debt-ridden company by the end of this year. Essar Steel was auctioned under the new Insolvency and Bankruptcy Code to recover Rs 54,547 crore of unpaid dues of financial lenders and operational creditors.