Indian steel companies and private equity funds eye steelmaking and iron ore assets of Vedanta

16 October, 2023 by

Reports from industry sources on October 13 indicate that India's JSW Steel, ArcelorMittal Nippon Steel Limited (AMNS), and a group of private equity investors are actively pursuing the acquisition of the iron ore and steel production assets held by the Vedanta Group in India.

The Vedanta Group currently oversees iron ore reserves in the states of Karnataka and Goa, as well as ESL Steel Limited, which operates a 2.5 million metric ton per year integrated steel mill located in the eastern state of Jharkhand. It's worth noting that the Vedanta Group has already communicated its intentions to divest from its steel and related assets, redirecting its focus toward non-ferrous metals, power, aluminum, and gas businesses by means of a demerger process involving the entities currently controlling these assets. Furthermore, it should be mentioned that the Vedanta Group acquired ESL Steel Limited in 2018 as part of the bankruptcy resolution process.


While there haven't been official statements from JSW Steel Limited or AMNS regarding this potential acquisition, industry experts suggest that the iron ore assets owned by Vedanta in Karnataka would complement the existing steel mill operations of JSW Steel Limited in Karnataka and Goa. Simultaneously, the potential acquisition of ESL Steel Limited, including its captive iron ore mines, would offer AMNS an entry point into the eastern region, as their current operations are primarily concentrated in Hazira, situated in the western state of Goa.

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