Uttam Galva Steels in $40-million export securitisation deal with Stemcor
By Our Corporate Bureau | 11 Mar 2005
Mumbai-based Uttam Galva Steels Ltd said it has closed a US $ 40 million annual exports securitization deal with Stemcor Pte Ltd a corporation incorporated in Singapore.
Stemcor has agreed to make interest bearing advance payments amounting to $40 million dollar to Uttam Galva Steels and would be buying galvanised coils, galvanised steel sheets (plain and corrugated), cold rolled full hard steel sheets and coils and cold rolled annealed steel sheets and coils equivalent to the above amount.
Stemcor is the largest international distributor of steel operating from more than 40 countries. Stemcor purchases, trades, markets, and sells raw steel, semi-finished steel, and end-user steel materials and in 2004 had a turnover of $5 billion. Stemcor assists companies with financing the purchase of steel and offers its own network for distribution of steel products by land, sea, or air.
Esxplaining the Stemcor deal, Ankit Miglani, director, Uttam Galva Steels Ltd said, "The success of the Stemcor deal reflects, among other things, continued robustness of Uttam's steel exports and the worldwide acceptance of our quality."
"The receivables will be used for working capital resulting in significant reduction in working capital interest cost for this as well as next fiscal," added Miglani.
Mathew Stock, managing director, Stemcor, disclosed one of Stemcor's longest relationships in India was with the Miglani."
Uttam Galva Steels Ltd., India's second largest exporter of galvanised, is poised for a major export thrust. The company is targeting record exports of 4 lakh tons of steel. Uttam has already crossed the milestone of a million tons of cumulative steel exports to 108 countries and has plans to double this figure in less than two years.
The company is expected to clock export turnover of Rs1,260 crore this fiscal, which would be 100 per cent growth compared to last fiscal. With focus on international marketing, 70 per cent of Uttam's value added products manufactured are exported. With strategy and plans in place, Uttam will be one of top exporter of steels for years to come.