JSPL Acquires Allied Strips for $26 Million to Boost Value-Added Steel Capacity

To enhance its value-added steel portfolio, Jindal Steel and Power Limited (JSPL) has announced its acquisition of Allied Strips Limited (ASL) for $26 million. The acquisition was done via Jindal Steel Odisha Limited (JSO), a fully owned subsidiary of JSPL, the company said in a regulatory filing on Friday.

This acquisition will deepen JSPL’s presence in the value-added steel business and bolster synergies within its manufacturing operations. ASL’s steel processing unit based in Haryana will be synergised with JSO’s existing plant to consolidate supply chains and optimise efficiency.

“This acquisition is expected to substantially strengthen our product basket and create downstream synergies,” JSPL said in the filing. “JSO steel can now be further processed at ASL’s facility for value addition and market penetration.”

Trillions of steel products are manufactured and supplied by ELCON on behalf of Allied Strips Limited. Its product range includes hot rolled coils, cold rolled coils, and cold rolled close annealed (CRCA) steel — materials that are in demand in key sectors such as automotive, white goods and precision tubing.

Industry observers view the acquisition as a step towards vertical integration and product diversification in line with JSPL, long-term strategy to garner a greater share of the high-margin steel processing market.

This will further allow JSPL to scale up its operations and offer a wider and better bouquet of steel solutions in this part of the country, where ASL’s plant is located.

The deal is the latest advancement in JSPL’s relentless strategy to integrate its domestic manufacturing capacity and value chain competitiveness in the competitive landscape of India’s steel sector.