IMR is planning to buy a steel plant in Odisha
Published Date | 2019 February 21
IMR Metallurgical Resources AG, a Switzerland based company, is projected to acquire a steel plant in Odisha which will help in expansion of their business in India and will drive India steel market in upcoming periodsIndia: IMR Metallurgical Resources AG, the Swiss commodity trading group is planning to acquire a stressed steel plant in Odisha. IMR is involved in global trading, marketing and financing of bulk commodities like, coking coal, iron ore, and iron & steel products. IMR, which had bid for ferro alloys producer FACOR under the NCLT last year, is now keen to expand in India by acquiring small and medium-size firms outside the NCLT that can help us get into steel production. While the Swiss trader will ensure raw material linkage to the steel plant through its global trading portfolio, it could partner PE firms in the acquisition. In October last year, Tata had agreed to sell an iron ore mine in South Africa to IMR for 366 million South African rand. Sanjay Sinha, director at IMR Metallurgical Resources, said: “India’s steel sector is poised for big growth”. According to BlueWeave Consulting, Being a core sector, steel industry tracks the overall economic growth of any country in the long term. Also, steel demand, being derived from other sectors like automobiles, consumer durables, and infrastructure, its fortune is dependent on the growth of these user industries. In any country, growth of steel industry brings numerous benefits such as growth to car assembly, agricultural equipment, household utensils, and goods, construction, transport, and electrical industries. Apart from this steel industry boosting economy growth through foreign currency earnings, urban growth, improvement in transport, raising living standards of local people. Demand from the construction industry and investments in road infrastructure are key factor for growth of the steel market in upcoming periods. Moreover, robust steel demand especially from the construction, infrastructure, and automotive sectors will keep end-product prices high, even as rising costs for key inputs, coking coal, and iron ore will drive the steel industry over forecast period. According to BlueWeave Consulting’s upcoming report, Titled –“India Steel Market by Process (Hot Rolled, Cold Rolled and Direct Roles ), by Steel Type (Carbon Steel, Alloy Steel, Stainless Steel and Others), by End-User Industry (Automotive, Mechanical Engineering, Electronic Engineering, Oil & Gas, Construction and Others), By Region, Size and Forecast 2018- 2025”- India steel market is expected with grow with a significant rate in forecast period, 2018-2025, owing to growing demand from building and construction industry. Moreover, rapid demand from automotive and transport industry, the pipe consumption in oil & gas sector, white goods and utensils in consumer durables industry will contribute in the growth of India steel market over forecast periods.