Jsha Bhusha Bhuswan Steel Case Study

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To,
The Director
Memo on potential acquisition

This report will compare JSW Steel and Bhushan Steel, both listed on Bombay Stock Exchange, India. Comparison is done by paying close attention to selected ratios, risk analysis and working capital of the companies.
Both companies have been manufacturing steel in India for over 30 years. JSW produces and markets steel, and it is one of the leading exporters of coated products with a presence in over 100 countries. The company’s six steel plants have a combined installed capacity of 14.3 million tonnes per annum (MTPA). JSW Steel markets its products across India through 400 retail outlets and exports its products to more than 140 countries in the globe. The company along with its subsidiaries operates in India, the Netherlands, the US, the UK, Chile, Mozambique, Georgia, Mauritius, Panama and Kenya. …show more content…

The company owns three manufacturing units, namely, Sahibabad unit in Uttar Pradesh, Khopoli unit in Maharashtra, and Meramandali unit in Orissa. Their client bases include automobile industry, electrical motor manufacturing industry, bearing industry and home appliances.
BSL carries out business operations across the world through its subsidiaries. The company operates in India and supplies its products to Asian markets and Europe, the US, Canada, Africa, China and the Middle East markets. It promotes Bhushan Energy Limited (BEL) to offer power business. BEL has set up a 300 MW power plant in Meramandali, Dhenkanal district of Orissa, which is processing generation of power from coal.
According to JSW’s Annual Report ending on 31st March 2014, its revenue increased by 25% to Rs 48,527 crores, during the same period BSL’s revenue fell by 10% to Rs 9726

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