Bhushan Steel

TATA Steel BSL
Private
Traded as BSE: 500055, NSE: BHUSANSTL, ISIN: INE824B01021
BSE SENSEX Constituent
Industry Steel
Founded 1987
Headquarters New Delhi, India[1]
Key people
 TV Narendran
(Chairman & Non-Executive Adnl. Director)
Rajeev Singhal
(MD)
Products Cold rolled, galvanised, Bhushan Galume, colour coated tiles, drawn tubes, strips, wire rods, alloy billets, sponge iron
Revenue Increase US$1.7 billion
Parent Tata Steel
Website Official website

Bhushan Steel Limited is the largest manufacturer of auto-grade steel in India.[2] Bhushan Steel, with a large amount of debt in proportion to its equity (3.5 times more), is a highly leveraged company. The company's consolidated debt stands at ₹31,839 crore, having risen 18 per cent from a year ago. The Company is spending Rs. 260 billion to expand its capacity to 12 million tonnes annually,[3][4] from the present installed capacity of around one million tonnes.[5]

Insolvency proceedings were initiated against the company on 26 July 2017 under the Insolvency and Bankruptcy Code, 2016.[6]

Tata Steel on 18 May 2018 announced the completion of its acquisition of Bhushan Steel (BSL) through its wholly owned subsidiary Bamnipal Steel Ltd (BNPL), wrapping up the resolution of the first case under Insolvency and Bankruptcy Code, 2016. The bankrupt firm was among the 12 stressed assets the RBI had referred for NCLT proceedings last year.[7]

Financial Management

Gross sales of Bhushan Steel grew from Rs.5 billion in 2001 to Rs.40 billion in 2007. It earned net profits of Rs.3.13 billion in 2007 and exported goods worth Rs.12.57 billion. Its exports include steel for both the automotive and white goods industry and the list of countries to which it exports includes several developed countries.[5]

Rajeev Singhal is the managing director of Bhushan Steel Limited.[5]

The Khopoli plant in Maharashtra was commissioned in 2004 and has been producing colour-coated sheets, high-tensile steel strappings, hardened and tempered steel strips for the first time in India, along with CRCA steel to cater to the needs of the automobile industry.[8]

At its Sahibabad plant in Ghaziabad, Uttar Pradesh, it has a 1700 mm mill, which produces the widest sheets in India for the automotive industry. It has highly automated systems.[5]

At its Meramandali, Dhenkanal plant in Odisha, Bhushan Steel produces hot rolled coils and has mills for hot rolling. Construction of the first phase is being carried out.[5]

Bhushan Power and Steel Limited has seven plants at four locations – Chandigarh, Derabassi in Punjab, Bangihatti, near Dankuni in West Bengal, and Thelkoloi in Odisha.[9] 233

References

  1. ↑ "Archived copy". Archived from the original on 14 November 2010. Retrieved 2010-11-19.
  2. ↑ "Analysts' picks: Ambuja, Cairn India, Cadila, RCom, Bhushan Steel". The Economic Times, 9 February 2008. Retrieved 19 February 2008.
  3. ↑ "Bhushan Steel to spend Rs 260 bn hike capacity to 12 mn ton". Iris, 11 February 2008. Retrieved 19 February 2008.
  4. ↑ "Bhushan Steel confirms setting up of projects worth Rs260bn". India Infoline, 11 February 2008. Archived from the original on 16 May 2011. Retrieved 19 February 2008.
  5. 1 2 3 4 5 "Bhushan Steel Ltd. (formerly Bhusan Steel & Strips)". Bhushan Steel Limited. Archived from the original on 17 April 2008. Retrieved 19 February 2008.
  6. ↑ "L&T moves NCLT to be declared as secured creditor in Bhushan Steel insolvency", Live Mint, 8 March 2018
  7. ↑ "First under insolvency code: Bhushan Steel bought by Tata Steel", Indian Express, 21 May 2018
  8. ↑ Bhushan Steel - Khopoli
  9. ↑ "Bhushan Power & Steel". Bhushan Limited. Retrieved 19 February 2008.
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