JFE buys 10% stake in JSW Steel

33240 Investors following JSW Steel. Share this News with them.

0

Like this story, share it with millions of investors on M3

JFE buys 10% stake in JSW Steel

JFE Holdings will acquire 10% stake in India's JSW Steel for about Rs 1,560-2,600 crore.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS JFE to buy about 10% of JSW Steel JFE Steel to buy 10% stake in JSW Steel for 30-50 bn Yen Japan's JFE may buy into JSW Steel Nippon denies report of talks for stake in JSW Steel ALSO READ See latest News about JSW Steel See previous management interviews See what other Experts & Brokerages are saying about JSW Steel Nifty BSE | NSE 31/05/12 Are Mutual Funds betting on Nifty?

Here is a verbatim transcript of an interview with Sajjan Jindal on CNBC-TV18. Also watch the accompanying video.

Q: The JFE press release talks about mutual share holding which means that you will be holding a stake in their company and they will be holding some in yours, can you elaborate on that?

A: This is part of our discussion that there will be a mutual share holding what percentage and how, these are all matters of discussion which will evolve over time.

Q: It also talks about a close collaboration as far as the West Bengal project is concerned will JFE be taking stake in that project, will that project be spinning of as an SPV and then JFE will be coming in, what kind of collaboration will that be?

A: That is again part of our larger discussion that in West Bengal project. Also JFE is very keen to participate in the West Bengal project but in what way and how that will happen this is all part of discussion. This is our initial agreement that we have agreed to join hands and do developments together. What that will entail, is a matter of detailing which will take some more time.

Q: This relationship talks about expanding within automotive steel, JFE is one of the leaders in automotive steel in Japan and now we have seen a slowdown happening in the Japanese car markets. So if they come into emerging markets like India, what kind of a technology tie-up you are looking at as far as JSW Steel and JFE is concerned and how much time will this entire process take right from the mutual share holding to stake and collaboration in West Bengal projects?

A: As we know that JFE is one of the leading auto grade steel producers in the world and they have been producing very high quality and high strength steel for auto grade for a very long time. Also India is a real growing market as far as automobiles are concerned and we as JSW Steel would like to take a leadership role in supplying the auto great material to the Indian material manufacturers. Therefore this collaboration is happening to take the advantage of their experience of over the last 40-50 years in producing this high quality steel and over a period of time all the details would be known and we would communicate it to the media

Q: Is this mutually exclusive alliance with JFE because you have not talked about the details the alliance in terms of how much percentages will they hold, if there will be a stake pick up etc?

A: Because we are still discussing, noting yet has been defined on what kind of percentage we will hold in their company and what they will hold in our company. It is all part and parcel of the larger discussion. This is the first step that we have taken that we have agreed to collaborate and as I mentioned two strategic groups have been formed in respective companies and now they will come together and discuss all the details.

Q: You have talked about the fact that this alliance is primarily for the Indian market. Why wouldn't you look at using this opportunity to tap the international markets especially where JFE is present in Japan and overseas? They are the fifth largest, if I am not wrong?

A: India and China are the two growing markets and our major focus right now is the domestic Indian market and we want to take a large share in this domestic market. JFE is also very keen to tap into this market and we are providing them this platform where we come together. They bring in the technology, experience and we bring in the scale of operation in India. So it becomes a very clear marriage.