Essar Steel, a Ruia owned company, is eyeing a majority stake in Ajmera Group owned company — Shree Precoated Steels (SPSL). This acquisition will help the company emerge as one of the largest players in the cold-rolled segment of steel market. Currently, Essar Steel is the third-largest steelmaker in India.
If the stake acquisition goes through, Essar Steel will get control over SPSL’s manufacturing unit and over 200 acres of land located at Ranjangaon near Pune. This acquisition deal is estimated to be around Rs 700-800 crore.
SPSL has manufacturing capacities of about 600,000 tonne of cold rolled steel, 450,000 tonne of galvanised steel and about 350,000 tonne of colour-coated steel. In FY 2008-09, the company posted sales of around Rs 1,940 crore. Shree Precoated Steels is now known as Ajmera Realty & Infra.