Jindal Saw, a part of the $18-billion OP Jindal Group, has approved a proposal for entering into a contract worth up to Rs 10,000 crore with group firm JSW Steel, from which it purchases raw material. The proposal for related party transaction was cleared by its shareholders through a special resolution last month.
The approval is for Jindal Saw to enter into a contract(s)/arrangement(s)/transaction(s) with JSW Steel, a related party up to a maximum amount of Rs 10,000 crore from financial year 2014-15 onwards.
Jindal Saw is in a commanding position in India's tubular market being the undisputed leader. The business operations are highly structured with three strategic business units: large diameter pipes, seamless tubes, and DI (ductile iron) pipes.
