JSPL sets eyes on Reliance Naval; says no plans to borrow for acquisition
Jindal Steel (JSPL) is in focus after Business Standard reported that the company is keen on acquiring bankrupt Reliance Naval and Engineering. Additionally, Morgan Stanley believes that Indian steel producers could increase prices. VR Sharma, Managing Director at JSPL discussed the developments and confirmed the interest.
Jindal Steel (JSPL) is in focus after Business Standard reported that the company is keen on acquiring bankrupt Reliance Naval and Engineering. Additionally, Morgan Stanley believes that Indian steel producers could increase prices.
VR Sharma, Managing Director at JSPL discussed the developments and confirmed the interest.
“We have visited Reliance Naval about ten days back. We have seen the facilities, the facilities are good. We have shown our interest. We have issued our expression of interest (EoI) letter and we are interested in this deal,” he said.
“Government of India and the Ministry of Defence are working very strongly to make India Aatmanirbhar in terms of making warships. If we take over this plant, it comes to us at a price that we are looking at, this means we can sell our products, we can sell our structures to this unit,” he added.
The company is looking to do Reliance Naval deal in its individual capacity and is not planning to borrow any money from any of the banks for this deal.
“Out of accruals if we can fund it and if we can acquire it then only we will do this deal. The EoI has been given, so now we are waiting for the discussions,” he stated.
In terms of debt, he mentioned, “We have now Rs 25,000 crore of debt. We will be ending this financial year with around Rs 21,000 crore of debt and our target is by the end of 2022 financial year, we will bring it down to Rs 15,000 crore.”
For entire discussion, watch the video
(Edited by : Abhishek Jha)
First Published: Mar 4, 2021 1:43 PM IST
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