Essar Steel, part of the Ruia-controlled diversified conglomerate, is reported in talks to acquire a majority stake in Shree Precoated Steels.

The move is expected to consolidate Essar Steel's presence in the value-added steel market, which further it would make the company one of the largest players in the cold-rolled segment-a major input for cars and consumer goods.

Shree Precoated Steels is an unlisted company of the Ajmera group and has the capacity to make about 600,000 tonne of cold rolled steel. In addition, it has about 450,000 tonne capacity of galvanised steel and about 350,000 tonne capacity of colour-coated steel.

The acquisition is expected to give Essar Steel control over Shree Precoated Steels' manufacturing unit and over 200 acres of land at Ranjangaon near Pune.

Markets experts estimated the deal size at around Rs 700-800 crore.