Shyam Steel To Acquire Majority Stake in Beekay Steel
Shyam Steel is acquiring a majority stake in Orissa-based Beekay Steel.
Through this acquisition, Shyam Steel expects to get a foothold in Orissa’s steel sector as Beekay Steel has a standing MoU with the state government for production of 0.28 MTPA of steel at its present facility.
Transaction Reference: BS
Shyam Steel Industries Limited (SSIL), is a flagship company of Shyam Steel with its existing steel units at Angadpur, Gopalpur & Howrah.
Shyam Steel expects to invest Rs 365 crore in the Barbil plant by 2012 with a 40 MW captive power plant, capacity expansion of DRI (sponge iron) to 0.1 MT, and Billet to 0.1 MT along with establishment of a coal washery.
Apart from this deal, Shyam Steel has lined up Rs.1,000 Cr investment for a 2 MT beneficiation and pelletisation plant in Sundergarh, Orissa. The plant will have a 50 MW captive power plant.
Beekay Steel manufactures steel and allied products and has plants in Jharkhand, Orissa, Tamil Nadu, Andhra Pradesh and West Bengal and has an annual turnover of Rs.600 Cr ($150 Mn).
Steel Industry is seeing a lot of M&A deals this year. Recently Concurrent (India) Infra has announced to acquire Pune-based Vakratund Ispat. Also KIOCL is acquiring Hospet based sick PSU Tungabhadra Steel Products Ltd.
Few months back, Essar Steel has acquired UK largest steel processor Oakside Solutions Ltd, while Jindal Steel & Power acquired Oman based Shadeed Iron & Steel for $500 Mn.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 05/08/10 | Beekay Steel - Shyam Steel | M&A | Shyam Steel Industries Limited | - |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 06/02/12 | M&A | Looking For | VRL Cement Limited | - | Planned |
| 03/02/12 | Private Equity | Emerging Markets Management LLC | Sintex Industries Limited | 2.97 | Completed |
| 02/02/12 | M&A | Binani Industries Limited | 3B - The Fibreglass Company | 362.00 | Completed |
| 16/01/12 | M&A | Dalmia Bharat Sugar and Industries Limited (Dalmia Cement Bharat Ltd) | Calcom Cement India Limited | 46.03 | Announced |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Shyam Steel Industries Limited | Shyam Sunder Beriwala & Family | Shyam Towers, EN 32, Sector V, Salt Lake, Kolkata-700091. West Bengal, India. |
Bellary Steels & Alloys Limited Bhushan Steel Limited |
www.shyamsteel.com |
| Beekay Steel Industries Limited | Bansal Group | Lansdowne Towers, 4th Floor, 2/1A, Sarat Bose Road, Kolkata -700020. West Bengal, India. |
JSW Steel Limited Adhunik Metaliks Limited |
www.beekaysteel.com |
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