ArcelorMittal entry to spur innovation: Domestic firms

ArcelorMittal entry to spur innovation: Domestic firms

The logo of the steel manufacturing giant Arcelor Mittal Italia. (Photo by AFP)

The presence of more companies in the market will lead to more innovations, quality and R&D activities, said domestic steel players on Thursday while reacting to the entry of global steel giant ArcelorMittal in India.

"We don't see ArcelorMittal as a challenge," JSW Steel Chairman Sajjan Jindal told PTI on the sidelines of the ISA Steel Conclave here.

More the number of players, more the research & development (R&D) activities, innovations, quality in the market, he added reacting to a question of how will the ArcelorMittal's entry benefit the consumers.

Jindal Steel and Power Chairman Naveen Jindal said, "We see its (ArcelorMittal's) entry as a positive step."

Tata Steel Chief Financial Officer Koushik Chatterjee also said there should be competition in the market.

Steel Authority of India Ltd (SAIL) Chairman A K Chaudhary said, "ArcelorMittal's entry will promote healthy competition in the market."

The industry looks forward to working with them in the future, he added.

Last week, the Supreme Court paved the way for ArcelorMittal's takeover of debt-ridden Essar Steel for Rs 42,000 crore and set aside the July 4 NCLAT order giving equal status to financial creditors and operational creditors.

Following the verdict, ArcelorMittal said it expects to complete the acquisition of the debt-ridden company by the end of this year.

Essar Steel was auctioned under the new Insolvency and Bankruptcy Code to recover Rs 54,547 crore of unpaid dues of financial lenders and operational creditors.