‘India to become second largest steel producer by 2015’
May 18, 2011 11:26 am
India gears to become the second largest producer of steel by 2015 from the current position of fifth, according to ‘Forging Ahead’, PwC’s annual review of M&A activity in the metals sector. The report says, for India to attain its double digit GDP growth, major policy changes are expected relating to metals and mining industry (keeping in mind Environmental issues) to boost the domestic metal production and utilisation of natural resources to support the projected infrastructure spend of Rs. 500 billion in next five years.
Metals deal activity is bouncing back strongly and momentum will remain upward in the year ahead, said the report. The value of international metals deals has broken away from the lows reached in the economic downturn and is now on its way back to the level recorded at the end of the 2006-08 M&A boom.
The report highlights:
• Three fold increase in international cross-border deals, which are up 46 per cent year on year
• US $ 14.3 bn total by the end of 2010 compared with a low of US $ 4.4 bn in 2009
• Current and future deal flow will keep these totals on course to move back towards the US$ 38 bn recorded at the end of the 2006-08 M&A boom
• Total metals sector M&A is also moving up strongly – up 79 per cent to US$ 27 bn from £ 15.1 bn the year before
• Marked increase in international deals is being led by moves to secure raw materials supply – two of the top three metals deals completed in 2010 were for iron ore resources – and to gain a greater presence in fast growth markets.
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