In a bid to strengthen its presence in the northern and western markets, JSW Steel is reported to be all set to acquire smaller rival Welspun Maxsteel, for about Rs 1,100 crore. Both the entities have signed a MoU last week after a financial due diligence by consulting services firm EY.
The deal will also help JSW to reduce production cost by supplying surplus raw material to make sponge iron cheaper. Currently, Welspun buys raw material from the global market, forcing it to sell sponge iron at the cost price in the market. JSW is expecting to trim production cost by Rs 2,500 a tonne. The current production cost stands at Rs 24,000 per tonne.
JSW Steel is part of the JSW group which, in turn, is a part of the O P Jindal group. JSW Steel is one of the largest steel manufacturing companies in India having units in Karnataka and Maharashtra producing crude steel, long steel and flat steel products.
Company Name | CMP |
---|---|
JSW Steel | 919.70 |
Tata Steel | 183.05 |
SAIL | 153.65 |
Jindal Stainless | 815.60 |
Jindal Saw | 560.50 |
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