Vedanta plans to exit steel business

Vedanta Group, led by Anil Agarwal, is reportedly exiting the steel business almost four years after deciding to go big in it. According to reports, Vedanta intends to sell Electrosteel and focus solely on its core businesses of mining and industrial.

According to the report, Vedanta has approached other steel companies such as Tata Steel, ArcelorMittal Nippon Steel, JSW, and Jindal Steel and Power, as well as some investors. One of the reasons Vedanta made this decision was to deleverage its balance sheet, which had $11.7 billion in debt at the end of March.

The report adds that in the summer of 2018, Vedanta beat Tata Steel to take over ESL for Rs 53.20 billion. While Electrosteel initially was a subsidiary of Electrosteel Castings, upon acquisition, Vedanta delisted the company.