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Mukand-Sumitomo forms Rs 11.81-bn JV for specialty steel business

The deal will enable Mukand to tap new business opportunities, increase exports and reduce its debt

Aneesh Phadnis  |  Mumbai 

Steel
Steel

has picked up 49 per cent in Mukand Limited's speciality business for Rs 11.81 billion.

The deal will enable Mukand to tap new business opportunities, increase exports and reduce its debt.

The two had signed a last year and concluded the transaction on Friday. The joint venture is engaged in rolling, finishing and marketing of wire rods and bars and plans to set up new rolling facilities in Hospet in Karnataka by 2020. The JV business has a revenue of around Rs 22 billion.

"Our debt is around Rs 30 billion and after this transaction, it will reduce to Rs 18 billion," said Niraj Bajaj, chairman,

The JV company supplies speciality to automobiles and auto component manufacturers in India and overseas. It also sees strong demand from the sector.

“Demand for steel in India is strong and we remain optimistic about growth,” said Rajesh Shah, co-chairman of

First Published: Fri, May 18 2018. 19:59 IST
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