Nithia Capital, the UK-based global advisory and investment firm, plans 3-3.5 million tonnes (mt) of steelmaking capacity in India through a mix of acquisition and expansion of existing assets, said its leader.
Nithia in partnership with CarVal Investors acquired Uttam Galva Metallics (UGML) and Uttam Value Steel (UVSL) in 2020 for a total consideration of more than Rs 2,000 crore. Since then, the iron-making capacity at UGML has increased three-fold to 1.5 mn tonnes per annum (mtpa) and plans are afoot to make the Wardha Steel Complex a 2.5+ mtpa steelmaking complex. The capex for this is being evaluated.
Nithia has launched the Evonith brand in India for all its investments. Nithia has reduced its exposure in Crest Steel & Power, which it acquired in partnership with Amalgam Steel earlier this year under the insolvency law.
Nithia’s plans are buoyed by India’s economic growth. The steel market is sluggish in the short term, but Saraf believes that in the next two years, with the general elections in 2024, more infrastructure projects by the government would fuel domestic steel consumption. Nithia plans to expand in power, infrastructure, mining and sectors it is not averse to partnerships for acquisitions. Globally, Nithia has invested $500 million in resource assets, excluding India. They all have minority financial partners.
