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Visa Steel likely to rope in partner for core biz

Source : BUSINESS_STANDARD
Last Updated: Fri, Dec 07, 2012 07:40 hrs

pVisa Steel which went into a corporate debt restructuring CDR programme two months ago might try to bring in a strategic investor in its core long steel businessppVishal Agarwal managing director told Business Standard &ldquoIn the special steel business we are open to the idea to have a strategic investor&rdquo He did not give details but said the company would evaluate as it goes forwardppAccording to company and industry sources the company is looking to align with an iron ore company so that it could secure raw material supplies given the shortage of it in the marketpptable cellpadding2 width400 tbody tr styleheight 15pt height20 td width821 bgcolor95acb3 height1font faceTahoma colorffffff size2strongSTEEL DEALstrongfonttd tr tr styleheight 15pt height20 td width821 bgcolorccd7dd height56 ul lifont faceTahoma size2Visa Steel went into a corporate debt restructuring programme two months agofontli lifont faceTahoma size2The company has three main businesses &mdash ferrochrome coke oven battery and special steelsfontli lifont faceTahoma size2The company is looking to align with an iron ore company so that it could secure raw material supplies given the shortage of it in the marketfontli ul td tr tbodytableppAt a board meeting on September 28 the company considered and approved a financial restructuring package finalised by its CDR Empowered Group Agarwal said the company had Rs 2000 crore of long-term debt which it was trying to reworkppThe impact can be seen on the other expansion projects Agarwal said &ldquoCurrently the challenge is to resolve the iron ore issue around the existing steel business before looking at new capacities&rdquoppEarlier the company had plans of doubling its 500000-tonne capacity factory in Odisha It had also planned a 25-million tonne steel plant and a 500 Mw power plant at Raigarh Chhattisgarh It had acquired 280 acres of the 1000 acres needed and the environmental clearances It had also announced setting up a 125-mt steel plant with a 100000 tonne manganese alloy plant and a 300 Mw power plant in Madhya PradeshppCurrently Visa Steel has a fully integrated 500000 tonne special steel plant in Odisha The plant includes a 400000-tonne coke oven plant hived off in a company called Visa Coke Ltd Last month it sold 49 per cent stake in this hived-off company to New York-listed SunCoke Energy for Rs 368 croreppThe company has three main businesses &mdash the ferrochrome business coke oven battery and special steels In ferrochrome Visa has a joint venture with BaoSteel of China called Visa Bao Ltd The two are setting up a 100000-tonne per year ferrochrome plant in Odisha wherein Visa holds 65 per cent and Baosteel the rest The plant was expected to be operational by June this year Agarwal said it should be commissioned by March 2013ppIn its coke business it sold 49 per cent to SunCoke in November In its core business of special steel the company is now looking for an investorppIn the second quarter of this financial year the company suffered a loss of Rs 367 crore preceded by a Rs 1087 crore loss in the first quarter In 2011-12 it posted a net loss of Rs 1189 crorep


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