Business India ×
  Magazine:
Interview

Published on: Sept. 20, 2020, 11:35 p.m.
Growth through acquisitions
  • Sanjeev Gupta, Founder, Liberty Steel

By Daksesh Parikh. Executive Editor, Business India

Q Why do governments across various countries support you?

A We support industry and support employment. In developed countries where industries are declining and people are unwilling to invest, we present the governments with a doable turnaround plan. We offer skilled workers an opportunity in these countries. Our belief is to bring industry back to the developed nations. And offer a more sustainable way of restructuring the companies.  

Q How has Covid impacted your plants globally?

A There were a few cases across the globe in our plants. On the whole less than one per cent were infected. One of the reasons being that people working in industrial sites are used to adhering to safety norms. Adding an extra layer or two does not make any difference but provides them considerable protection.
 
Q Covid does not seem to have dimmed your appetite for takeovers. Do you have a big M&A team?

A We have a large M&A team in place and they are continuously scouting and evaluating opportunities. Our policy has been growth through acquisitions. We have closed a few deals in the last six months including two in France and one which is nearing closure in Spain.
 
Q Which are the likely regions offering opportunities?

A Outside of China, the steel industry is likely to see consolidation. In Europe there is a growing movement to change over from carbon steel to green steel. The old guard may not necessarily be the changemakers in the industry. It is no secret that some large companies in Europe are on the block. There are also quite a few small companies across the EU.

Q What are your plans in SIMEC?

A We are continuously examining ways to increase renewable power. We have put in large solar plants in Australia and plan to use the power in producing hydrogen which in turn will be used partially or otherwise in scrap melting. We have also set up alternate energy plants in Scotland and are looking at producing power through tides and waves. The energy solutions we are looking at are to make our plants future-proof. We have also set up a plant for generating energy from waste.
 
Q How are you confident of turning around Port Talbot when Tatas have not succeeded?

B I am a very big fan of the Tatas. They are a great company and what Ratan Tata has achieved is remarkable. Ratan Tata is my idol. We have fine-tuned a model for recycling steel and have global resources for sourcing scrap material. For us, our centre of gravity is the UK; for Tatas it is India. Port Talbot is a great site and I am confident of turning it around. We can, if required, forge a partnership with Tatas and make it happen. It will be an honour to work with Tatas.
 
Q What can you do which others cannot?

A We have set up global scrap sourcing and recycling plants in place to make each of our plants self-sufficient. Getting scrap and setting up renewable plants can certainly be done by others. If our plans to make green steel are copied, I will be most happy. The point is that not many have been investing in it so far. The UK, for instance, exports five million tonnes of scrap annually and imports 10 million tonnes of finished steel products. We aim to change that.
 
Q What is your aim going ahead in aluminium?

A The aim is to produce at least one million tonne of aluminium over the next two years, maybe earlier. We are currently engaged in making canned water from the rivers in Ben Nevis, the tallest mountain in Scotland. The cans will be reusable. The need is to move away from plastic and leave a better environment for the next generation.

Don't miss this

Cover Feature

In control of its growth momentum

JK Tyre readies itself for an exceptional growth spell

Special Report

Ready to roll

NCRTC could be the mascot of changes the government has planned for the railways

Focus

Pegasus affair rocks the nation

Unless cleaned up, it will only bring down India’s global image

Corporate Report

GHFL consolidates its leadership

Garware High Tech Films dominates the market with its differentiated portfolio

Our letter to you, once a week.
Register with The CSR Weekly for free!

E-MAGAZINE
Exceptional Growth Ahead
Can we do another 1991?
Amazing turnaround
FROM THIS ISSUE

Corporate Report

Corporate Report

MSMEs

Corporate Report

Feature

Corporate Report

Social Responsibility

Healthcare

Goodyear India partners Americares India Foundation

Published on Feb. 2, 2021, 9:21 p.m.

The partnership will support COVID-19 healthcare facilities in Faridabad and Aurangabad

Environment

Tata Motors launches a 'Go Green' initiative

Published on Dec. 23, 2020, 10:34 a.m.

The company will plant a sapling for the sale of every new commercial vehicle

Women Empowerment

Tata Starbucks ties up with Educate Girls to empower women

Published on Dec. 2, 2020, 3:10 p.m.

The partnership aims to provide volunteering and educational support to those who have relocated to urban cities from villages

Environment

Indian Oil has a social initiative for a clean and green world

Published on Nov. 25, 2020, 2:53 a.m.

The public sector company is planting a tree for every retail customer visit during its TreeCheers campaign period

Climate Change

Entrepreneursip

Two Indian organisations win UNDP prize

Published on July 21, 2021, 2:55 p.m.

The Equator Prize recognises local and indigenous communities from around the world

Environment

Largest man-made forest to come up in Chhattisgarh

Published on July 21, 2021, 12:35 p.m.

In one of the country's largest ecological restorations, 2,500 acres of barren land will be converted into a natural habitat

Entrepreneursip

Veerappa Moily’s son to launch ClimateTech VC fund

Published on July 21, 2021, 12:09 p.m.

The fund will concentrate on four sectors: green buildings, energy storage, sustainable agriculture, and alternative energy

Environment

One-fifth of forests at risk due to climate change: government

Published on July 21, 2021, 10:40 a.m.

The dominant tree species in central Indian forests, Teak and Sal are expected to be sensitive to change in temperature than rainfall

Stay ahead of the times.
Register with The Climate Change Weekly for free!