SAIL taking M&A route to raise value for stakeholders
In line with the global trend of consolidation in the steel industry, the Steel Authority of India Ltd (SAIL) too is taking the route of merger and acquisitions (M&A) to increase value for stakeholders.
The company is looking to provide added opportunity for synergy and growth by merger of Neelanchal Ispat Nigam Ltd (NINL) and Maharashtra Electrosmelt Ltd (MEL) with itself, the SAIL Chairman, Mr S.K. Roongta, told shareholders at the company’s annual general meeting here.
"We are also at an advanced stage in the formation of a joint venture company for a cement plant, which will use blast furnace slag of Bhilai Steel Plant as an input and will result in twin benefit of value addition as well as assured solid waste disposal," he said.
SAIL is currently implementing expansions works in all its four integrated steel plants. Total projects worth Rs 18,500 crore are in various stages of implementation.
Major projects cleared in recent months include modernisation-cum-expansion of IISCO Steel Plant to raise product quality and process productivity to international standards.
"The expansion plans are not aimed at volume gains alone and benefits would come by way of all-round improvement in productivity levels in all areas of operation. Issues pertaining to elimination of technological gaps, yield improvement, pollution control, matching infrastructure facilities would be fully addressed," he said.
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