Welspun to buy sponge iron business from Grasim

Wednesday, 11 June 2008 15:49:35 (GMT+3)   |  
       

India's Gujarat-based Welspun Power and Steel has announced that it will buy the sponge iron business of Grasim Industries, the flagship company of Mumbai-based Aditya Birla Group, for Rupees 10.30 billion (US$240.272 million).

Grasim's net profit in the first quarter of 2008 was Rupees 8.8077 billion (US$205.44 million).

Commenting on the transaction, executive president and business head of Aditya Birla Group Ravi Kastia stated, "Since sponge iron is not the group's core business, we decided to exit from the business and have a limited presence in the value chain of the steel business."

elspun is planning to combine its sponge iron business at Anjar in Guajarat with Birla's sponge iron unit in Maharashtra, and thereby increase its production.
Welspun Group owns three companies; Welspun India, Welspun Syntex and Welspun-Gujarat Stahl Rohren.


Similar articles

Philadelphia P&S dock delivered scrap prices

10 Jul | Scrap & Raw Materials

Indian integrated steelmaker Shri Bajrang to raise $30 million to fund brownfield expansion

26 Nov | Steel News

Indian sponge iron output growth to switch to negative in Q3 FY 2021-22 from coal shortage

18 Oct | Steel News

Bolivia’s ESM resumes construction works following 15-month delay

22 Jun | Steel News

Mills in Chhattisgarh seek invocation of pre-emption rights to prevent iron ore leaving the state

18 Jun | Steel News

Odisha sponge iron plants seek government intervention to mitigate iron ore shortage, spiralling prices

03 Jun | Steel News

Bolivia’s ESM to resume construction works by March

23 Feb | Steel News

Indian sponge iron producers seek export duty for iron ore pellets

21 Jul | Steel News

Ex-India DRI offer to Bangladesh down

01 Aug | Scrap & Raw Materials

India’s domestic DRI prices trend up

18 Jul | Scrap & Raw Materials