POSCO and Adani Group have agreed to explore business cooperation opportunities, including the establishment of an environment-friendly integrated steel mill in Mundra, Gujarat, as well as other businesses, by investing upto $5 billion.
The non-binding MoU signed between POSCO and Adani intends to further collaborate at the group business level in various industries such as renewable energy, hydrogen and logistics in response to carbon reduction requirements. Both parties are examining various options to cooperate and leverage the technical, financial and operational strengths of each company.
The collaboration includes evaluating a joint integrated steel mill at Mundra, Gujarat, based on POSCO's technology and R&D capability. POSCO and Adani Group intend to utilize renewable energy resources and green hydrogen, in line with both partners' ESG commitments to sustainability and energy efficiency.
POSCO runs POSCO-Maharashtra, a 1.8-million-ton cold-rolled and galvanized mill and four processing centres in Pune, Delhi, Chennai and Ahmedabad. It is anticipated that this business cooperation between POSCO and Adani will bring dominant partnership synergy in the Indian steel industry.
POSCO and Adani Group have also signed a MoU with the Government of Gujarat for support and co-operation from the Government for the collaboration, the press release highlighted.
Adani Enterprises (AEL)'s consolidated net profit tumbled 69.5% to Rs 121.74 crore on a 44.8% surge in net sales to Rs 13,218.02 crore in Q2 September 2021 over Q2 September 2020.
Shares of AEL lost 0.76% to close at Rs 1,829.90 on BSE yesterday, 12 January 2022. AEL is the flagship company of Adani Group, one of India's largest business conglomerates. The company's business investments are centred on the fields of airport management, technology parks, roads, data centre and water infrastructure.
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