Welspun Group is reportedly set to sell its Maharashtra-based steelmaking unit to Sajjan Jindal’s JSW Steel at a loss of equity worth Rs 300 crore. JSW will take over the Rs 1,100 crore of debt of the company and free all the guarantees given by the Welspun group to banks.
Welspun had acquired the company -- Vikram Ispat -- from the Aditya Birla Group in 2009 for Rs 1,050 crore and renamed it Welspun Maxsteel. It later expanded the capacity of the plant but could not turn it around due to lack of gas supply from ONGC’s gas blocks in Bombay High. Cheap gas was promised to companies during the 1980s to promote industrial units in western India.
Welspun India (WIL) a Welspun Group company is one of the largest manufacturers and exporters of bed & bath textile products globally. WIL’s portfolio comprises wide range of home textile products such as terry towels, bed linen (basic bedding and decorative bedding) rugs and bathrobes.