The Hindu Business Line : `M&As will fuel faster growth of Indian steel industry'

Mergers and acquisitions will fuel faster growth of the Indian steel industry, bringing a lot of prestige and wealth to the nation, according to captains of the industry.

Speaking at the `CEO's Conclave' that was held here on Tuesday, under the aegis of `Metals 2006', a day-long symposium organised here by the Bengal Chamber of Commerce and Industry, CEOs and top executives of steel companies felt that M&As as part of a company's growth strategy would enable it to grow faster than it could if it took the organic route to growth. They, however, agreed that the ideal strategy for growth should combine both organic and inorganic growth.

Nation building

According to Dr B.N. Singh, Joint Managing Director and Chief Executive Officer of JSW Steel Ltd, "An increase in the country's manufacturing base is important for the country's economic growth and nation-building. M&As help bring together varied management experiences too."

Dr T. Mukherjee, Deputy Managing Director of Tata Steel, said M&As are bound to take place with companies focusing on sustainable EVA positive and growth strategies.

Mr Rajeev Jhawar, Managing Director of Usha Martin Ltd, felt that M&As would enable a company to grow faster than it could if it took the organic route to growth. Mr Vishal Agarwal, Managing Director of Visa Steel, felt Indian companies must participate in opportunities for M&As, especially in the US and Europe.

According to Mr Ashish Beriwala of Ramswarup Group, it is necessary to focus on "human integration" during M&As. Mr Manoj Agarwal, Managing Director of Adhunik Metaliks Ltd, said exports of iron ore needed to be checked to ensure that Indian companies are not deprived of their raw material requirements.

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