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Explained: How Uttam Galva Steels lost its sheen amid mounting debts

The promoter group's deal-making capabilities have come back to haunt it

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Uttam Galva | Uttam Galva Steels | ArcelorMittal

Ishita Ayan Dutt  |  Kolkata 



steel
Part of the problem was the rise in raw material costs in 2015, a factor exacerbated by cheap Chinese imports on hot rolled coils that attracted safeguard duties

The Mumbai-based Miglanis were known for eye-catching deals. In 2009, a stake in their flagship Steels Ltd (UGSL) paved the way for the world’s largest steelmaker, ArcelorMittal, to gain a foothold in India after aborted attempts at setting up greenfield plants. In 2015, when South Korea’s failed to make any headway with its mega steel plant in Odisha, it signed a memorandum of association (MoA) with group company Shree Uttam Steel and Power, for setting up a much smaller plant of three million tonnes. But five years on, the outcomes of the deals remain unrealised for different reasons, while three controlled by the Miglani family have landed in bankruptcy court.

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First Published: Fri, October 16 2020. 06:10 IST

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