Congratulations on winning the bid for Bhushan Steel. What made you come to the valuation of Rs 36,000 crore for Bhushan Steel? Do you expect the synergies to pan out for Tata Steel and Bhushan Steel at a later point of time?
When we looked at this opportunity, we saw Bhushan Steel was probably the best asset on the block. It is pretty close to where we are already operating. It is in Odisha where we get a lot of support from the government. We see there is a lot of opportunity for synergy because it is a mill, we were very familiar with its configuration. It has got a furnace which we know very well. It has got a rolling mill which has excess rolling capacity and we probably have some extra slabs from Kalinganagar once we expand.
So, in many different ways we saw a lot of synergies there. We also know how long it takes to build a steel plant in India. It has taken us more than 10 years to build Kalinganagar which is today a three million tonne plant whereas Bhushan is a five million tonne plant. So, we worked hard on it and we are happy we got it. Read More