InvestorQ : Why is JSW Steel looking at Neelachal Ispat after acquiring Bhushan Power?
Riya Dwivedi made post

Why is JSW Steel looking at Neelachal Ispat after acquiring Bhushan Power?

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shrinidhi Rajan answered.
3 weeks ago
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JSW Steel, part of the Jindal Group, sees a lot of synergy in expanding to the Eastern, which is where most of the steel infrastructure is based. It has now set its eyes on Neelachal Ispat after successfully completing its acquisition of Bhushan Power and Steel. Bhushan was a NCLT case and the case had been languishing in NCLT for quite some time due to debt defaults and the deal was finally closed out last week.

Neelachal Ispat is a public sector undertaking with MMTC and NMDC holding key stakes in the company along with other 2 PSUs. As part of its divestment plan for the year, the government is planning to divest 93.71% in the company. Neelachal has a 1.1 million tonnes per annum or TPA capacity and it essentially produces pig iron and billets, giving the Jindal Group another lateral expansion in the long products business.

JSW had earlier boosted its steel capacity by 2.5 MTPA after the acquisition of Bhushan Power. The reason Neelachal fits into JSW’s strategy is that it would help JSW Steel in enhancing its downstream capabilities. Also, Neelachal is based out of Jharsuguda in Odisha and along with Bhushan Power & Steel and Monnet Ispat acquisitions, this would mark the third major foray of JSW Steel into the Eastern region.

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