NCLT Mumbai has cleared the resolution plan submitted by a subsidiary of ArcelorMittal/ Nippon Steel (AM/NS) for Indian Steel Corporation (ISC), signalling the JV’s appetite to grow in India by acquisitions.

Since ArcelorMittal, led by Indian tycoon Lakshmi Niwas Mittal, entered the country by taking over Essar Steel in partnership with Nippon Steel of Japan in 2018, the duo have picked up multiple assets, the latest being ISC.

According to the plan approved by the NCLT, AM Mining India Private Ltd — an indirect subsidiary of AM/NS India — will execute a resolution plan totalling Rs 897 crore, which includes Rs 810 crore payment to the secured financial creditors, who cumulatively had admitted a claim of Rs 2,709.78 crore.

Gujarat-based ISC has annual capacity of 0.6 million tonnes. It is a steel processing company with operations spanning cold-rolled, galvanised, and colour-coated steel products. The port-based state-of-the-art facility specialises in manufacturing value-added steel products that cater to the automotive, construction, home appliance, and general engineering sectors.

With an established OEM customer base, the plant also has a service centre within its premises.

Commenting on the acquisition, Dilip Oommen, executive vice-president, ArcelorMittal, said, “The acquisition of Indian Steel Corporation will enhance our downstream capabilities and broaden product portfolio as we look to capitalise on market opportunities presented by the steel industry, especially in high value-added steel production. It will also lead to synergies across our downstream operations.”

ISC is the second downstream company AM/NS acquired after Uttam Galva Steel last year. The Khopoli-based UGSL plant had a downstream capacity of 1.2 MT.

While these were in the downstream segment, AM/NS acquired multiple assets to secure the supply chain and energy sources, demonstrating crafty skills that distinguished the steel empire built piece by piece by L.N. Mittal and his son Aditya.

Post 2018, it bought Bhander Power plant from an ARC, Orissa Slurry Pipeline Ltd from NCLT court, a clutch of ports and power plants dotting on the east and west coasts of India from the Ruia family promoted by Essar.

However, the JV is not solely depending on acquisition to chart the Indian growth path. The JV is investing $7.4 billion to expand capacity, which includes debottlenecking primary steel making capacity to 9MT at Hazira, $5.6 billion to take it up to 15MT and $1 billion for value-added steels.

The company has also signed an agreement with the Odisha government to set up a greenfield plant in the eastern state.