Japan-based firms Sanyo Special Steel and Mitsui & Co have picked up 29 per cent and 20 per cent stake in the Mahindra Sanyo Special Steel joint venture, which is now 51 per cent owned by Mahindra Ugine Steel Company
(MUSCO).

Mahindra Sanyo Special Steel is the new name of Navyug Special Steel, and its majority owner MUSCO is a listed venture with interests in steel & stampings. The auto giant M&M-led promoter group owns 55.47 per cent in MUSCO.

For acquiring 29 per cent and 20 per cent stakes in the joint venture, Sanyo and Mitsui paid Rs 129 crore and Rs 89 crore respectively, valuing the joint venture at Rs 444.89 crore.

As arrangement of the three-way joint venture, Japanese firms Sanyo and Mitsui will provide technical support and marketing assistance to the joint venture.

Speaking on the topic, Mahindra Sanyo Special Steel Chairman Hemant Luthra said, “It gives us the opportunity to move up the value chain while addressing the growing needs of the Indian market for speciality steels.”

The joint venture company aims to enhance its current production and operational efficiency. Currently, it has a production capacity of 120,000 tonnes per annum.

Specialty steel is used for manufacturing gears, engines, crankshafts and bearings. Bulldozers, earth moving vehicles and robots are also made with specialty steel.