Mukand aims to cut debt to Rs 1000 cr post JV with Sumitomo

MUMBAI: Specialty steel maker Mukand on Friday said it aims to cut debt to Rs 1,000 crore benefiting from the JV that it has finally completed with Japan’s Sumitomo Corp to cater to the demands of the fast growing automotive and engineering industries. The company will use the funds infused by the Japanese trading company to pare current debt of Rs 1,800 crore that it brought down from Rs 3,000 crore.

The JV, named Mukand Sumi Special Steel, in which the Japanese trading company has picked up 49% for a consideration of Rs 1,180 crore will be engaged in the business of rolling, finishing and marketing alloy wire rods and bars made from blooms and billets procured from Mukand Ltd's plant in Hospet in Karnataka.

These products are used in the components used in automobiles. While currently the JV will use the rolling facility in Thane, the land adjoining its alloy steel plant in Hospet will eventually be used for commissioning of new steel rolling facilities by mid-2020.