Sajjan Jindal-led JSW Steel on Monday said the resolution plan submitted by JSW Steel Coated Products — a wholly-owned subsidiary of the primary steel producer — for insolvent Asian Colour Coated Ispat (ACCIL) has been approved by the National Company Law Tribunal (NCLT).
JSW Steel Coated Products operates in the niche segment of the domestic market, manufacturing value-added products that address construction, warehousing and roofing requirements.
Of the total product mix of JSW Steel, the colour coated products form 4 per cent of the basket, while galvanised products comprise 10-11 per cent.
Acquisition of ACCIL will provide deeper presence in the galvanised market in India as galvanised corrugated sheets, colour coated coils and sheets are part of ACCIL’s product basket. Haryana-based ACCIL also has a facility in Maharashtra and the combined entity has total capacity of one million tonnes. JSW Steel had emerged the highest bidder for the company in June last year with an offer of Rs 1,550 crore.
In March, the National Company Law Appellate Tribunal (NCLAT) had excluded the lockdown period for counting of the ‘resolution process’ under Section 12 of the insolvency and bankruptcy code (IBC). The debt resolution was automatically extended for the lockdown. Meanwhile, JSW Steel is awaiting results of the litigation initiated against the acquisition of Bhushan Power and Steel.