UK-based Nithia Capital announced the launch of the Evonith with an aim to invest 3-3.5 million tonnes (mt) of steelmaking capacity in India through a mix of acquisition and expansion of existing assets.
Nithia’s flagship Indian investments UGML and UVSL are form the Wardha Steel Complex near Nagpur. The companies will be renamed Evonith Metallics (EML) and Evonith Value Steel (EVSL) once legal and compliance formalities are completed.
The iron-making capacity at UGML has increased three-fold to 1.5 million tonnes per annum (mtpa) and plans are afoot to make the Wardha Steel Complex a 2.5+ mtpa steelmaking complex.
‘Evonith is rooted in a mindset of continuous evolution. We believe in eternally moving upwards and onwards. It reflects in our core identity. The launch of Evonith in India furthers our desire to grow beyond conventional business models and become the backbone of our community, the lynchpin of sustainability, and to continue to hold ourselves to higher standard, Chairman of Evonith was quoted saying.
Nithia’s plans are buoyed by India’s economic growth. The steel market is sluggish in the short-term, but Saraf believes that in the next two years, with the general elections in 2024, more infrastructure projects by the government would fuel domestic steel consumption.
Nithia plans to expand in power, infrastructure, mining and sectors it is not averse to partnerships for acquisitions.
Globally, Nithia has invested $500 million in resource assets, excluding India. They all have minority financial partners.