Sucheta Dalal :Heavy mettle: Here come the Russians!
Sucheta Dalal

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Heavy mettle: Here come the Russians!  

April 27, 2010

Russian companies plan to prove their mettle in the Indian steel market. Major Russian steel companies including Magnitogorsk Iron & Steel Works (MMK) are looking for joint ventures in the country.


MMK, one of the largest enterprises in the Russian steel sector, is already on the lookout for an Indian steel company for a joint venture. Novolipetsk Steel, Severstal Russian Steel and the Evraz Group are the other major steelmakers in Russia.


Severstal is Russia’s largest steel producer. Certain sections of the media have said that Severstal plans to sell one of its units in Italy to Tata Steel or ArcelorMittal. In 2005-06, the same company was looking for a partnership with Arcelor, while Arcelor later partnered with Mittal Steel.

The Evraz Group has a strong presence across the various verticals of the steel & mining businesses in Russia. In FY2009, the group’s crude steel production was 15.3 million tonnes (MT).


Novolipetsk Steel is among the four largest steel companies in Russia. The company recorded 10.6MT steel production and sales in FY2009. For 2010, the company’s total crude steel production is expected to grow 10% year-on-year to over 11.6MT. No definite Indian company has been identified for the joint venture.


However, these companies are believed to be looking out for end-to-end steel companies, not just steel product suppliers. Most end-to-end steel companies in India belong to big corporate houses and may not be willing to enter into a joint venture with another player. Thus it remains to be seen if the Russians succeed in finding Indian partners.— Amritha Pillay

-- Sucheta Dalal