Sumitomo Acquires 49% In Joint Venture With Mukand Steel
Sumitomo Corporation buys 49% stake for Rs 1180.99 Cr in the joint venture company, Mukand Sumi Special Steel Limited, a leading speciality steel supplier for the fast-growing automotive and engineering industries. Mukand Limited retains 51 % equity of this joint venture company.
The joint venture is engaged in the business of rolling, finishing and marketing of alloy steel wire rods and bars made from blooms and billets procured exclusively from Mukand Limited's Hospet plant in Karnataka. The JV has 100 acres of land adjoining Mukand's existing plant at Hospet for the proposed construction and commissioning of new steel rolling facilities by mid-2020 at an approximate cost of Rs 600 crore.
The automotive sector in India has grown rapidly in FY 18 and is expected to continue to expand for several years. The auto component sector in India is a Rs 3 trillion industry, currently exporting of Rs 740 billion a year, and is a major success of the 'Make in India' programme.
Mukand Limited is the preferred supplier of speciality steels to all global manufacturers in the Indian automotive sector for their critical components.
For Sumitomo Corporation, a leading Fortune 500 company in 129 locations in 66 countries and regions, this investment is their largest in India. This is also one of the largest equity investments in a manufacturing company in India by any Japanese corporation for FY 18.