Vedanta’s acquisition of Ferro Alloys has received the approval of National Company Law Tribunal, Cuttack.
Ferro Alloys had filed for bankruptcy and insolvency in 2016 and the Cuttack law tribunal, vide its order dated January 30, 2020, approved a resolution plan submitted by the Vedanta as part of its acquisition of Ferro Alloys.
Ferro Alloys is India’s largest producer and exporter of ferro chrome, an essential ingredient for manufacture of special steel and stainless steel. Ferro Alloys owns and operates a chrome plant with an annual capacity of 72,000mt in Orissa. The company also owns two operational chrome mines.
The acquisition will complement Vedanta’s existing steel business as the vertical integration of ferro manufacturing capabilities has the potential to generate significant efficiencies.
In December 2018, Vedanta Resources pumped $4 billion into Electrosteel Steels to scale up its capacity from the existing 1.5mn mt per annum to 7mn mt.
Vedanta is planning to position itself as one of the top three steel players in the country and has strategies to enhance the production capacity to 10mn mt over the next five-six years.