Help Desk -
9717405332, 9599714297, 9810335381
Email
Password

Next wave of big change in steel will be in the secondary sector - Mr Partha Sengupta

Steel News - Published on Fri, 20 Jul 2018

Image Source: Business Line
Business Line reported that Indian domestic steel industry is likely to witness ‘rationalisation and restructuring’ of capacities over the next three-five years, particularly in the fragmented secondary sector. Mr Partha Sengupta, President, Operations, JSW Steel said there is likely to be some integration in different parts of the value chain to make valuations attractive. He said that “The theme of restructuring in the secondary steel sector would be value-pooling and the process would be led by investors including PE funds or bankers, and promoters may play a minimal role.”

Mr Sengupta said that “This restructuring will be primarily necessitated by the fact that they might be unable to service debt because of outdated technology and arbitrage products. The rationalisation of capacity may be through joint ventures of different segments of the value chain.”

The creation of excess capacity without a ‘solid underlying model’ has been cited as one of the major reasons of stress in the sector. While integrated players account for 50 per cent of the country’s steel production, the remaining comes from the fragmented sector comprising sponge iron and rolling mills.

Source :

Posted By : Sanju Moirangthem on Fri, 20 Jul 2018
Related News from Steel segment