Sanjeev Gupta’s GFG Alliance Acquires Adhunik Metaliks, Enters India
Billionaire Sanjeev Gupta-led GFG Alliance on Tuesday announced the acquisition of Adhunik Metaliks Ltd. and its arm Zion Steel for about Rs 425 crore, marking its entry into the Indian steel industry.
The London-based firm is the second global steelmaker to enter India in the past two months. In December 2019, Lakshmi Niwas Mittal's ArcelorMittal SA completed the acquisition of Essar Steel Ltd. to mark its India foray.
GFG Alliance on Tuesday completed the strategic acquisition of Adhunik Metaliks Ltd (Adhunik) and Zion Steel Ltd (Zion) in a Rs 4.25 billion or $60 million cash deal, the company said in a statement. The transaction marks the alliance's entry into India, one of the world's fastest growing steel markets, the statement added.
The immediate focus, the company said, will be on reviving and restoring the facilities and operations of the two companies. Once stabilised, the business will begin its integration into the Liberty Group, a part of GFG Alliance.
Commenting on the acquisition, Gupta said: "Today marks an important milestone in our global steel strategy with the purchase of Adhunik Metaliks and our entry into India. India is one of the fastest growing and most vibrant steel markets in the world."
Adhunik Metaliks has an integrated steel plant located at Chadrihariharpur near Rourkela in Odisha. The plant has both blast and electric arc furnaces for making 0.5 million tonnes of steel per year, as well as a 34 megawatt captive power plant.
Adhunik, along with Zion Steel's steel-rolling facility, has a combined capacity of 400,000 tonnes per annum. The sites produce products for automotive, energy, engineering and oil and gas sectors.