Essar Steel has completed the acquisition of Hy-Grade Pellets and Steel Corporation of Gujarat from Stemcor of UK. With this both the companies have become wholly-owned subsidiaries of Essar Steel making it a totally integrated steel producer.

The acquisition was completed at a cost of $450 million (approx Rs.1,950 crore) and was financed through equity by way of compulsorily convertible preference shares as approved by shareholders.

Essar Steel, thanks to the acquisition, has become a totally integrated steel producer with end-to-end control over raw material, processes, technology and finished products. The acquisition of HGPL will bring in benefits of high quality raw material while that of SCGL is expected to result in value addition in downstream products. Essar Steel stands to gain 1.2 million tpa of cold-rolling capacity making it one of India's largest producers of cold-rolled products.

Also See:

Essar Steel plans further capacity hike (21-Mar-05)

ProjectsToday's Special Feature -- Essar Group: A Review of Projects (Jun 2005)