Liberty House, part of Sanjeev Gupta’s global GFG Alliance, has secured the approval of the Committee of Creditors (CoC) to acquire and revive the Adunik Metaliks integrated steel production operation at Chadrihariharpur near Rourkela in Odisha in eastern India.
The plant currently has steelmaking capacity capable of being expanded to 1 million metric tonnes per annum (mmtpa).
“Its integrated operations include sponge iron, blast furnace, electric furnaces, and downstream rolling of finished steel products,” said a company statement adding that the business employs almost a thousand people.
Adhunik manufactures ferro alloys, billets, bars and rounds. Its customer segments are automotive, engineering, oil and gas, telecom, defence, power, railways and construction.
Within automotive, Adhunik has approvals from leading OEMs and supplies Tata Motors, Mahindra, Ashok Leyland, Ramakrishna Forging, JMT Auto, and Amtek Auto, which has also received approval from creditors for acquisition by Liberty House.
Adhunik Metaliks had been in corporate insolvency resolution process since August 2017.
Liberty House Group’s resolution plan received the support of committee of creditors (CoC) as the most competitive plan which takes into account best recovery for lenders and also a solid plan needed to revive and stabilise the company, said the statement.
GFG executive chairman Sanjeev Gupta said, “We have important ambitions for India and approval to acquire Adhunik is a milestone on our path towards implementing our vision for sustainable steel production and downstream manufacturing in the country. Adhunik’s integrated operations, and supply linkages to downstream industry, especially to Amtek Auto, also recently approved for acquisition by Liberty House, will enable us to build this value chain progressively.”
Earlier this year Liberty’s resolution plan for Amtek Auto was also passed by lenders with over 94% majority.
“India is a growing market place with bright outlook for steel, and downstream industries, in particular the automotive sector. We look forward to completing the acquisition and implementing our resolution plan in a speedy manner. I want to personally extend a warm welcome to the entire workforce of Adhunik and look forward to them becoming a part of growing GFG family,” Mr. Gupta added.
Amtek Auto is a leading tier one machining, forging, and castings suppliers to OEM’s in the auto sector with a large footprint in India and also plants in Japan , Thailand & Spain.
