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Jindal Steel Acquires Oman
Jindal Steel Acquires Oman
Jindal Steel Acquires Oman
Jindal Steel and Power Ltd (JSPL) on Thursday announced that it has completed
the acquisition of Oman-based Shadeed Iron and Steel Co LLC (Shadeed). The acquisition was
completed for $464 million, which includes the assumption of liabilities and was carried through
by JSPL's 100 per cent subsidiary, Jindal Steel and Power (Mauritius) Ltd (JSPLM).
JSW Group is one of the fastest growing business conglomerates with a strong presence
in the core economic sector. This Sajjan Jindal led enterprise has grown from a steel rolling mill
in 1982 to a multi business conglomerate worth US $ 5 billion within a short span of time. As
part of the US $ 10 billion O. P. Jindal Group, JSW Group has diversified interests in Steel,
Energy, Minerals and Mining, Aluminium, Infrastructure and Logistics, Cement and Information
Technology. On its road to growth and expansion, the Group is also conscious about its
responsibility towards environment and social development. Eco-efficiency is a matter of
principle. Preventive measures for damage to the environment are taken into account at the
planning stage of production and growth.
JSW Foundation, an integral part of the Group, is the CSR wing, with a vision to create
socio economic difference in the fields of Education, Health and Sports, Community
Relationship/Propagation as well as Art, Culture and Heritage. JSW Steel, the flagship company
of the JSW Group, is the largest integrated private steel manufacturer in India in terms of
installed capacity. JSW’s history can be traced back to 1982, when the Jindal Group acquired
Piramal Steel Limited, which operated a mini steel mill at Tarapur in Maharashtra and renamed it
as Jindal Iron and Steel Company (JISCO).
JSW Steel offers the entire gamut of steel products, pellets, slabs, HR coils/ sheets, HR
plates, CR coils, Galvanized coils/ sheets, Colour coated coils/ sheets. It is the leading
manufacturer of cold rolled, galvanized and colour coated steel with manufacturing facilities at
Vasind & Tarapur in Maharashtra. JSW Steel is the largest manufacturer and exporter of
galvanized steel in India with its products exported to over 100 countries. It is the first Indian
Company, under a technology licensing from BIEC International Inc., USA to produce
Galvalume sheets. By 2020 the company would be producing 32 million tons of steel annually
with Greenfield integrated steel plants coming up in West Bengal and Jharkhand.
Shadeed Iron & Steel LLC operates as an integrated steel making company in the United
Arab Emirates. It produces hot direct reduced iron, hot briquetted iron, and steel billets, as well
as converts steel billets into tubes, sections, and bars. The company was founded in 2005 and is
based in Abu Dhabi, the United Arab Emirates. As of May 19, 2010, Shadeed Iron & Steel LLC
operates as a subsidiary of Jindal Steel & Power (Mauritius) Limited.
For the acquisition, JSPL has tied up $400 million in debt financing from international
banks while the rest of the amount would be from internal accruals.
The Shadeed facility is engineered by Kobe Steel (Japan) and Midrex (US), which are
among the global leaders in the field of direct iron technology. This is also the same technology
JSPL will be using in its Orissa facility. Shadeed is also installing 1.5 million tonnes a year
gasbased hot briquetted iron plant at Sohar Industrial Port area of Sohar, Oman.
To support its plan to import thermal coal from the open market as well as through long-
term contracts, Coal India Ltd (CIL) has proposed to form a 50:50 joint venture with the
Shipping Corporation of India (SCI).
The joint venture, which is expected to be incorporated by end of this fiscal, will take full control
of creating the supply logistics and delivery of imported coal from the source of import to the
consumers.
According to sources, both companies have started exchanging notes in this regard. Interestingly,
it is proposed that apart from handling CIL's import business, the joint venture will be allowed to
make the most of the increasing opportunity to ship imported coal to India.
“If the initial discussion is of any indication, the joint venture will be managed by SCI (which
has the domain expertise in the field) and would also own its vessels once a critical volume is
achieved,” a source said.
While CIL's involvement will ensure an initial business volume, the joint venture will be free to
grab more business opportunities in the areas of coal supply logistics,” the source added.
CIL plans to import 6 million thermal tonne of coal by the end of this fiscal based on firm
commitments from power utilities including NTPC.
Citibank will form a 50:50 joint venture with Mukesh Ambani- owned Reliance Retail to
distribute the former’s consumer finance products such as loans and credit cards. The joint
venture is expected to work as a non-banking financial company (NBFC) with a combined
investment of Rs 500 crore. Both the parties would shell out close to Rs 250 crore, while the rest
of the details are yet to be worked out. Both of them would have equal contribution to expand the
business. We have invested about $62 million in the partnership.
The joint venture would initially target Reliance Retail’s large customer base, which is estimated
at around 4 million. Reliance Retail, at present, has over 1,000 retail outlets across the country.
The proposed joint venture is also expected to launch a couple of new co-branded cards. Citi had
earlier set up a joint venture with Maruti Suzuki for car finance, though in recent months, though
the JV’s activities have slowed down in recent months. Reliance has been ramping up its retail
operations with premium and luxury brands as well as the consumer durables business.
Consumer finance, which would include loans and credit cards, is one of the fastest-growing
segments in the financial services sector. The sector is estimated to grow at a rate of about 30 per
cent annually. The annual credit card spends in India are estimated to be in the range of Rs
50,000 crore. Penetration of credit cards in India is about 1 per cent compared with a global
average of 4.6 per cent.
The credit card industry has been witnessing a rise in delinquencies over the past few quarters.