The Supreme Court, on November 15, approved ArcelorMittal's takeover plan of Essar Steel. ArcelorMittal-the world's largest steel manufacturing company, controlled by the London-based Mittal family-is expected to change the steelmaking landscape in the country. It will pose a tough challenge to two big private players, Tata Steel and JSW Steel, which are better positioned in terms of margins.
The three majors are expected to fight for supremacy in product pricing, market expansion and capacity creation. ArcelorMittal may see India as its base for markets in South Asia to export products. JSW is already aggressive in export markets.
The players will compete in production of valued-added products and target tie-ups with high-value customers. There is also likely to be a fight for acquiring raw material and captive mines.
Nevin John