GFG Alliance Completes Acquisition of Bankrupt Indian Steel Plant

SEATTLE (Scrap Monster): British-based GFG Alliance led by Sanjeev Gupta has announced acquisition of bankrupt Indian steel company. This marks the conglomerate’s first entry into the Indian market.

According to company press release, it has spent $60 million to take over Adhunik Metaliks Ltd and Zion Steel Ltd. Adhunik’s plant in the eastern Indian state of Odisha is estimated to have an annual crude steel production capacity of around 500,000 tonnes. Zion Steel has a rolling mill. The units, which are currently not in operation, will be integrated into GFG's Liberty Steel Group.

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Commenting on the completion of acquisition, Sanjeev Gupta, Executive Chairman, GFG Alliance noted that it sees huge potential in the acquired business to serve the local market. The company looks forward to start working with all stakeholders to revive the plants, thereby offering employment opportunities, he added.

The plans for acquisitions had commenced in 2018. However, it has been pending before court after Adhunik Metals went into liquidation due to sustained losses. The company had reported loss before tax of $126.9 million during the fiscal year ended 31^st March, 2018.