GFG Alliance acquires India-based Adhunik Metaliks

GFG Alliance, headquartered in London, has completed the acquisition of India-based Adhunik Metaliks Ltd. and Zion Steel Ltd. in a cash deal worth 4.25 billion rupees (or $60 million). The transaction marks GFG Alliance’s entry into India, the company reports in a news release on the transaction.

According to GFG Alliance, India is “one of the world’s fastest growing steel markets.” 

GFG Alliance also plans to introduce its Greensteel model to revive the steel plants, combining steel recycling with low-carbon and renewable power sources to create a more sustainable and competitive operation.

“Today marks an important milestone in our global steel strategy with the purchase of Adhunik Metaliks and our entry into India,” says Indian-born British businessman and GFG Alliance’s Executive Chairman Sanjeev Gupta. “We see huge potential in this business through the introduction of our Greensteel model to create a competitive, sustainable operation to serve the local market. It has been a challenging journey to get us to this stage, but we now look forward to starting work in partnership with all stakeholders to revive these plants and bring employment back. 

“On a personal note, it is great to be investing in the country where my family began in the steel industry a generation ago,” he adds.

Adhunik is an integrated steel plant located at Chadrihariharpur near Rourkela in Odisha. According to the news release from GFG Alliance, the plant has both blast furnace and electric arc furnace (EAF) steel making capability with 0.5 million metric tons per year of capacity. Adhunik along with Zion Steel, its associated steel rolling facility, have a combined rolling capacity of about 400,000 metric tons per year.

The sites produce products for the automotive, energy, engineering, and oil and gas sectors.

According to GFG Alliance, the company’s immediate focus will be on reviving and restoring the facilities and operations. Once stabilized, the business will begin its integration into the Liberty Steel Group. In October 2019, GFG Alliance had announced the consolidation of its steel businesses into one global entity, the Liberty Steel Group, which is the 8th largest steel producer in the world outside China, with operations in 200 locations in 10 countries.