Mitsui takes 20% stake in Indian Steel

Indore, November 27, 2007: Japanese major, Mitsui & Co. signed a joint venture agreement with Ruchi Group, India to increase its present equity stake of 10% to 20% for the expansion of Indian Steel Corporation Limited (ISC) to manufacture Cold Rolled Steel / Galvanized and Color Coated Steel products. The project is located near Kandla, in the state of Gujarat.

The present designed production capacity of ISC is 200,000 Mton / year for the cold rolled steel and 120,000 Mton / year for galvanized products. With the expansion, ISC would be adding capacity of more than 400,000 MT of cold rolling and coated products. The expansion is expected to reach full operation by the year 2009. The total project cost would be approx. Rs. 1250 crores. The project would target the booming Construction and Auto sectors in India, which is witnessing robust growth.

Mitsui & Co. Limited, is one of the Japan's largest trading companies with total revenues of more than USD 32.95 Billion and variety of business interests such as Metal products and minerals, Machinery, Electronics, Chemical, Energy, Consumer Product and Services, Logistics and Financial Markets. They have presence in 91 countries through their 175 offices.

Speaking on the occasion, Mr. Kiyotaka Watanabe, Executive Managing officer - Iron and Steel Products Business Unit said that this is Mitsui's first ever equity investment in the Indian steel Products sector. He also added that India has best potential for future growth among most Asian countries.

Commenting on the occasion, Mr. Kailash Chandra Shahra, Chairman, Indian Steel Corporation Limited said, "We are delighted to have Mitsui as an equity partner in our new project. This investment reflects Mitsui's confidence in Ruchi as well as in Indian Steel sector."

Mr. Umesh Shahra, Managing Director of Indian Steel Corporation Limited quoted " ISC`s products have been highly appreciated by our numerous esteemed end-customers in terms of both, quality and cost. With such encouraging response from our customers and their firm confidence in our capabilities, we are motivated to go for expansion of the project. The expansion would reflect the state-of-art technology for production of cold rolled, ZN-Al coated and colour coated material".

After completion of the project, the Ruchi Group will add a fresh capacity of approximately half a million tones to its existing steel processing capacity. "With increasing activity in the Indian construction and sustained buoyancy in the construction segment, we are bullish on the domestic demand", confers Mr. Umesh Shahra, Managing Director, Indian Steel Corporation.