An experienced and committed workforce has enhanced the prospects of reviving forge roll maker Gontermann-Peipers India Ltd (GPIL) and makes it a compelling case to put in a bid, according to a top executive of India’s leading steel producer JSW Steel.
Confirming its interest in Calcutta-based GPIL, Sajjan Jindal-led JSW said it would participate in the re-auction which is scheduled on November 11, barring legal challenges to the exercise.
An appeal against the rebid has been posted for hearing before the Supreme Court on November 7. If the apex court approves the process, which has been set in motion by the National Company Law Tribunal, Calcutta, and reconfirmed by the appellate tribunal in Delhi, GPIL will be auctioned off as a going concern.
JSW, which has been a party before the National Company Appellate Tribunal, Delhi in GPIL, is pressing for the re-auction which it described as a strategic asset for the Indian steel sector.
“GPI produces rolls which is a very important input for the steel industry. That’s why we have shown interest in that. Our interest is that the plant has to be revived. It is important for India,” Seshagiri Rao, joint MD and group CFO of JSW Steel, said.
Asked if the bids are allowed, would JSW make an offer? “Yes, of course,” confirmed Rao.
JSW may be pitted against several entities, mostly from the real estate sector, when the re-bid takes place.
The reserve price has been set at Rs 91 crore, higher than the price discovered in the first round of auction which took place in September, 2021.
Snaefell Heights LLP, an entity linked to Calcutta-based real estate group Srijan Realty, had put in a bid of Rs 88 crore in the auction. The firm has now gone to the Supreme Court challenging the re-bid, which would allow many more players other than JSW to join the race for the company.
Asked if JSW could set up a greenfield plant to make steel rolls, Rao laid out the advantages of a brownfield plant.
“What is very important is experienced people. They are motivated, they want the plant to be saved. That in my view gives a huge advantage in reviving the company. It is not that difficult to set up a company but getting people and reaching the operating stage will take time,” Rao said.
GPI has about 462 people on its payroll, including many technical experienced hands. Some of them believe the plant could be back in business within six months. A section of employees are also batting for companies such as JSW to acquire GPIL, which will secure jobs apart from protecting the manufacturing sector.
Closed since 2016, the GPIL factory on Diamond Harbour Road near Joka, sits on a 25.35 acre plot. An estimate suggests Rs 30 crore may be required to operationalise the unit.
