Mahindra & Mahindra Ltd.

Mahindra & Mahindra has hived off the steel business of its subsidiary, Mahindra Ugine Steel Company (Musco), into a new unit, 49% of which has been sold to two Japanese firms for Rs 186 crore. The company sold 29% stake to Sanyo Special Steel Company for 111 crore and another 20% to Mitsui & Co for Rs 76 crore. Mahindra Ugine will retain 51% stake in the company, thus making it a majority-owned JV company. The legal process is likely to be completed in the next 4-6 months. 

Sanyo's technical assistance will help Mahindra Ugine diversify its portfolio and get into more niche applications of oil and gas, power and engineering industries, both in India and other emerging markets, whereas Mitsui will assist Mahindra Ugine strengthen sales and marketing footprint in Indian alloy steel and the other emerging markets.

Mahindra Ugine is also planning to unlock value by selling off 65 acres of land in Kanhe, near Pune, which is likely to fetch the company over 100 crore. Through the stake sale and land monetisation, Mahindra Ugine will have funds close to Rs 280-300 crore, which will be used for reducing debt and improving existing operations.