Liberty House, part of Sanjeev Gupta’s global GFG Alliance, has secured the overwhelming approval of the Committee of Creditors to acquire and revive the Adunik Metaliks the integrated steel production operation at Chadrihariharpur near Rourkela in Odisha in eastern India.
The plant currently has steelmaking capacity capable of being expanded to 1m mt per annum. Its integrated operations include sponge iron, blast furnace, electric furnaces, and downstream rolling of finished steel products. The business already employs almost a thousand people. It manufactures ferro alloys, billets, bars and rounds.
Its customer segments are automotive, engineering, oil and gas, telecom, defence, power, railways and construction. Within automotive, Adhunik has approvals from leading OEMs and supplies Tata Motors, Mahindra, Ashok Leyland, Ramakrishna Forging, JMT Auto, and Amtek Auto which has also received approval from creditors for acquisition by Liberty House.
Adhunik Metaliks had been in corporate insolvency resolution process since August 2017. Liberty House Group’s resolution plan received the unanimous support of committee of creditors (CoC) as the most competitive plan which takes into account best recovery for lenders and also a solid plan needed to revive and stabilise the company.
GFG executive chairman Sanjeev Gupta said, “We have important ambitions for India and approval to acquire Adhunik is a milestone on our path towards implementing our vision for sustainable steel production and downstream manufacturing in the country. Adhunik’s integrated operations, and supply linkages to downstream industry, especially to Amtek Auto, also recently approved for acquisition by Liberty House, will enable us to build this value chain progressively. India is a growing market place with bright outlook for steel, and downstream industries, in particular the automotive sector. We look forward to completing the acquisition and implementing our resolution plan in a speedy manner. I want to personally extend a warm welcome to the entire workforce of Adhunik and look forward to them becoming a part of growing GFG family.”
Earlier this year Liberty’s resolution plan for Amtek Auto was also passed by lenders with over 94% majority. Amtek Auto is a leading tier one machining, forging, and castings suppliers to OEM’s in the auto sector with a large footprint in India and also plants in Japan , Thailand & Spain.
GFG is currently evaluating opportunities across its value chain and Liberty is participating in the insolvency resolution process for other significant assets in India which include Bhushan Power & Steel, ABG Shipyard, Castex Technologies, Metalyst Forgings, Amtek Ring Gear, all part of its integrated GREENSTEEL strategy, and its target to invest US$ 5 billion in India.
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