JSW Steel Ltd. and Vedanta Ltd. are interested in buying debt-laden Usha Martin Ltd.'s specialty steel business, valued at between 35 billion and 50 billion Indian rupees, sources told India's The Economic Times May 30.
JSW Steel is in advanced talks to acquire the business as part of its pursuit of distressed assets in India, the U.S. and U.K., one source said, adding that the group is also targeting another steel plant in Europe following its takeover of Italy's Aferpi.
Meanwhile, Vedanta has been working to enter the steelmaking business to add value to its iron ore resources. The Vedanta Resources PLC subsidiary recently won the bid to acquire insolvent Electrosteel Steels Ltd. in an auction.
Usha Martin reported total debt of 37.23 billion rupees at the end of March and booked quarterly losses in the previous fiscal year. Its specialty steel business includes a 1 million tonne per annum plant in Jamshedpur with captive iron ore and coal mines. Rajeev Jhawar, Usha Martin's managing director, said last year that the company was considering selling either its wire rope or steel business to reduce debt.
As of May 30, US$1 was equivalent to 67.48 Indian rupees.
