DNA reported that barely a year after they sold Ispat Industries to JSW Steel, the Mittal brothers Mr Vinod and Mr Pramod are on the lookout for a buyer for Gontermann Peipers (India) Ltd, which makes rollers for steel mills, among other products.

When the times were good for steel producers, its key clients, Gontermann was posting handsome profits and revenue growth. But its health and performance have gone downhill since, coinciding with the economic slowdown and a reversal in the fortunes of the steel makers.

Investors, on the other hand, have been peeved at developments including a plan to make an unrelated diversification into setting up a commodity bourse, announced a year back but not pursued in right earnest with the Forward Market Commission, the regulator for such exchanges.

In terms of fundamentals, however, Gontermann has a strong presence in the industry, being the largest steel roll manufacturer, with a presence in both cast and forged rolls, key components for hot-rolled and cold-rolled steel mills.

Gontermann Peipers has also invested in raising capacity to about 21,000 tonne, from 15,300 tonne. The additional capacity was commissioned at Gontermann’s plant at Pailan in West Bengal recently.

The Mittals own 56.13% in Gontermann. Institutions, including banks and mutual funds, have very little holding in it.

Besides Gontermann, the brothers currently control Balasore Alloys Ltd, Ispat Metallics Ltd and Ispat Profiles Ltd in India. Their holding outfit, Isle of Man based Global Steel Holdings, also controls steel plants in Bulgaria and Nigeria and manages a steel facility in Zimbabwe.

(Sourced from DNA)