GFG Alliance has completed the acquisition of Adhunik Metaliks and Zion Steel in a INR 4.25 billion ($60 million) cash deal. This marks the fast-growing steel group’s entry into the Indian market.

GFG Alliance will introduce its “GREENSTEEL” model to revive the steel plants – combining steel recycling with low carbon and renewable power sources.

“Today marks an important milestone in our global steel strategy with the purchase of Adhunik Metaliks and our entry into India – one of the fastest growing and most vibrant steel markets in the world," GFG Executive Chairman Sanjeev Gupta says in a note seen by Kallanish. “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.”

Adhunik, located in Chadrihariharpur, Odisha, has a combined 500,000 tonnes/year blast furnace- and electric arc furnace-based steelmaking capacity, as well as a 34MW captive power plant. Zion Steel is its associated steel rolling facility with a 400,000 t/y capacity. The sites produce products for the automotive, energy, engineering and oil & gas sectors.

The situation represents a turnaround from last July when the National Company Law Tribunal ordered the liquidation of Adhunik after Liberty House failed to implement its accepted Resolution Plan on time (see Kallanish passim). The order was subsequently stayed after Liberty filed an appeal against the decision.