In 2018, Vedanta beat Tata Steel to take over Electrosteel at INR 5,320 crore.
December 2, 2022
Vedanta Group has planned to exit the steel business. This move comes almost four years after the group decided to make big in the segment. As per a news report, Vedanta is planning to sell Electrosteel and focus just on its core businesses, which are mining and industrial.
According to the report, Vedanta has approached a number of steel majors in addition to some investors as well, in this regard. One of the reasons why Vedanta is planning to retreat from its steel business is because the firm reportedly wishes to deleverage its balance sheet, which had a debt of USD 11.7 billion at the end of March.
The report further adds that in the summer of 2018, Vedanta beat Tata Steel to take over ESL for a sum of INR 5,320 crore. Initially, Electrosteel was a subsidiary of Electrosteel Castings, upon acquisition, Vedanta delisted the company.
At the time of the said acquisition, Vedanta also asserted that this acquisition is expected to help its iron ore business as the vertical integration of steel manufacturing capability has the potential for great efficiency.