Companies

JSW Steel acquires Welspun’s steel biz for ₹848 cr

Our Bureau Mumbai | Updated on April 01, 2021

JSW Steel has entered into agreement to acquire the high-grade steel plates and coil business of Welspun Group for ₹848 crore. As part of the deal, it will also buy out a land parcel attached to plates and coil mills division for ₹1.50 crore.

In 2019, Welspun Group had assigned the sale to Laptev Finance.

On Wednesday, JSW Steel entered into an agreement with Laptev to acquire Welspun plates and coil business as a going concern on slump sale basis for ₹848 crore, subject to closing adjustments towards net working capital.

The consideration amounts will be paid on a deferred basis, subject to Welspun fulfilling certain regulatory approvals and payment milestones as provided under the Business Transfer Agreement, JSW Steel said in a statement.

Expansion completed

JSW Steel has started production of additional 5 million tonne per annum steel at its Dolvi plant in Maharashtra. The expansion at Dolvi has increased the company's steelmaking capacity to 23 million tonnes a year.

JSW has invested ₹15,000 crore in doubling the capacity along with 1.5 mtpa coke oven plant. The supporting facilities are to be commissioned progressively in coming days.

The expansion at Dolvi was to be completed last September but was delayed due to the Covid pandemic.

Non-availability of required manpower and material due to the lockdown announced by the government and its subsequent extensions had hit execution of the project. Further, non-availability of foreign experts from technology and equipment suppliers due to international travel restrictions also impacted the commissioning schedule.

Published on April 01, 2021

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