JSW Ispat Special Products Limited is involved in producing and marketing ferro alloys, billets, pellets, sponge iron, structural steels, and thermo mechanically treated (TMT) bars.
To assist the infrastructure and construction industry, it has united with the steel plant at Raigarh, which has around 1.5 million tons per annum production capacity to manufacture hot-rolled (HR) plates, rebars, and structure profiles. The products are delivered to the Business-to-Business segment.
On late Wednesday evening, JSW Ispat Special Products declared that the entity will be shifting some of its assets to a new fully owned subsidiary, Mivaan Steels Limited, concerning the production of community grade steel as the listed company could focus on special steel products.
The assets, which are to be shifted, have a consolidated value of Rs 417 crore and generated revenues of Rs 906 crore, which was approximately 22% of the topline of JSW Ispat in the fiscal year 2021.
According to the company statement, the assets consist of manufacturing equipment at Raipur, including a ferro alloy plant, a 0.25 million tons per annum steel manufacturing plant, and a 0.3 million tons per annum sponge iron plant. Mining equipment at Kanker and linked coal washery operations at Patherdih and other specific assets and properties will also be moved.
The movement would be for Rs 443 crore on a slump sale basis.
In 2018, from the bankruptcy court, JSW Ispat Special Products was purchased by JSW Steel and its promoters. It was earlier known as Monnet Ispat & Energy Limited.
The company read a statement to the stock exchange that the profile of the products produced at the manufacturing equipment at Raipur concern the commodity-grade market that serve the structural and construction sectors with a relatively lower volume of production and helps customers mainly around its operating area.
The statement also read that with a relatively higher volume of production, helping both export and domestic markets, the focus of the other equipment of the company at Raigarh was on special steel products.
It also stated that by shifting these assets, the company will be able to focus on the business of special steel products.
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