The $2-billion Uttam Galva Group has roped in Korean giant Posco to set up an integrated 3 million tonne per annum steel manufacturing facility in Sindhudurg district of Maharashtra at a cost of $3 billion (Rs.19,000 crore). This will be Posco's first steel plant in the country, with its plan to set up own greenfield unit in Odisha being delayed by almost 10 years due to environmental and land clearances.
It is also the fourth big investment announcement in Maharashtra in a week, and will be the Korean giant's second facility in the state. Earlier this year, the company had inaugurated a state-of-the-art $709-million cold-rolling mill in Mangaon with a capacity of 1.8 mtpa.
Interestingly , another global steel major, Arcelor Mittal, has already acquired a stake in Uttam Galva Steels, the flagship of the Uttam Galva Group.
Last week, General Motors announced an investment of $1 billion to set up a manufacturing unit in the state, while Anil Ambani-owned Reliance Group announced an investment of $1 billion for setting up a defence city in Nagpur. Foxconn (known as Hon Hai in Taiwan), which makes iPhones for Apple, followed with an investment of $5 billion to set up a manufacturing facility in Maharashtra.
Shree Uttam Steel and Power, part of Uttam Galva Group, and Posco Korea signed a memorandum of agreement (MoA) to set up the steel facility through a 80:20 joint venture. The Miglani family , the promoters of Uttam Galva Group, will hold a majority of 80% stake to start with. Posco will have the option to increase its stake to 50% later.
Shree Uttam Steel & Power is fully owned by the Miglani family . Group flagship, Uttam Galva Steels, is one of the largest manufacturers and exporters of value-added steel products in India. The proposed JV would be set up at Satarda, bordering Goa, a source of iron ore for the plant.
The Uttam Galva Group operates about 1.6 mtpa of steel capacity in Maharashtra with investments of Rs.7,000 crore and plans to further scale up to 2.2 mtpa with investments of another Rs.4,000 crore. Post completion, the Uttam Galva Group will have 5.2 mtpa of steelmaking capacity with investments of Rs.30,000 crore.
It is also the fourth big investment announcement in Maharashtra in a week, and will be the Korean giant's second facility in the state. Earlier this year, the company had inaugurated a state-of-the-art $709-million cold-rolling mill in Mangaon with a capacity of 1.8 mtpa.
Interestingly , another global steel major, Arcelor Mittal, has already acquired a stake in Uttam Galva Steels, the flagship of the Uttam Galva Group.
Last week, General Motors announced an investment of $1 billion to set up a manufacturing unit in the state, while Anil Ambani-owned Reliance Group announced an investment of $1 billion for setting up a defence city in Nagpur. Foxconn (known as Hon Hai in Taiwan), which makes iPhones for Apple, followed with an investment of $5 billion to set up a manufacturing facility in Maharashtra.
Shree Uttam Steel and Power, part of Uttam Galva Group, and Posco Korea signed a memorandum of agreement (MoA) to set up the steel facility through a 80:20 joint venture. The Miglani family , the promoters of Uttam Galva Group, will hold a majority of 80% stake to start with. Posco will have the option to increase its stake to 50% later.
Shree Uttam Steel & Power is fully owned by the Miglani family . Group flagship, Uttam Galva Steels, is one of the largest manufacturers and exporters of value-added steel products in India. The proposed JV would be set up at Satarda, bordering Goa, a source of iron ore for the plant.
The Uttam Galva Group operates about 1.6 mtpa of steel capacity in Maharashtra with investments of Rs.7,000 crore and plans to further scale up to 2.2 mtpa with investments of another Rs.4,000 crore. Post completion, the Uttam Galva Group will have 5.2 mtpa of steelmaking capacity with investments of Rs.30,000 crore.
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