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Sumitomo buys 49% in Mukand Sumi Special Steel for Rs 1,181cr

Press Trust of India  |  Mumbai 

Japan's has bought 49 per cent stake in its Indian (JV), Mukand Sumi Special Steel, for Rs 1,181 crore.

Mukand (the Indian JV partner) will retain 51 per cent equity in the company, which will be a leading speciality supplier for the fast growing automotive and engineering industries, Mukand's Rajesh V Shah told reporters here.

The JV is at present engaged in the business of rolling, finishing and marketing of wire rods and bars made from blooms and billets, procured from Mukand's Hospet plant in

It has 100 acre of land adjoining Mukand's existing plant at Hospet for the proposed construction of new rolling facilities by mid 2020 at a cost of around Rs 600 crore, Shah said, adding that the money will be raised through internal accrual and debt.

Mukand is a supplier of speciality steels to all global manufacturers in the domestic automotive sector for their critical components.

For Sumitomo Corporation, a company present in 129 locations in 66 countries and regions, this investment is their largest in

Makoto Horie, senior managing executive officer, general manager, metal products business unit, Sumitomo Corporation, said, "We were keen to strengthen our presence in India, one of the fastest growing markets in the world."

Niraj Bajaj, chairman and managing director, Mukand, said that both the partners have already been working closely together for the past five years.

Mukand has a debt of around Rs 3,000 crore at present, which according to will be reduced to Rs 1,000 crore by end of this year.

The company is also looking at monetising its excess land to reduce debt further, he said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, May 18 2018. 21:00 IST
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