JSPL in talks to buy Stemcor’s pellet unit in Odisha

Naveen Jindal’s JSPL is in talks with global steel trader Stemcor for buying their pellet unit in Odisha, sources with direct knowledge suggest. Global steel trading giant, Stemcor, which owns 80% stake in the unit along with an Indian promoter which owns 20% stake, is expecting a valuation of $300 million.

The Odisha project produces 4 million tonnes of pellet, an intermediate steel product. The unit also has an iron ore mine next to the unit which produces over 2 million tonnes of ore per annum. This acquisition could mean backward integration for JSPL which is currently constructing a 1.6 million tonnes steel plant in Odisha.

To an ET Now query, JSPL’s spokesperson said, "We do not react to market speculations. As a growing company, we are always on the lookout for opportunities to expand, enhance and add value to our business." Stemcor India’s Matthew Stock said, “I have no comment at this time.”