Indian steel makers lucrative targets for global players

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Tuesday, 29 Sep 2009
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Indian steel makers lucrative targets for global players
Tuesday, 29 Sep 2009

A persistent demand slump that has seen steelmaking capacity idled worldwide for nearly a year is pushing top global producers to expand their footprint in India, which along with China is a rare bastion of growth. Strong local demand driven by infrastructure building and rebounding car sales has led big foreign steelmakers to seek out investments among a fragmented local industry after efforts to develop standalone projects met with delays.

Mr Rakesh Arora an analyst at Macquarie Research said that "India is on the radar of most companies given the lucrative ness of the market. India has both demand growth and cheap iron ore going for it."

Earlier this month, global leader ArcelorMittal said it would acquire a one-third stake in Indian re-roller Uttam Galva and more such deals are expected given the difficulty of going it alone in India.

Mr Nittin Johari CFO of Bhushan Steel told Reuters that "It is very difficult for someone coming from outside to set up a Greenfield project. Foreign firms have realized it's not possible to do business standalone in India."

(Sourced from www.steelguru.com)

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