Strategic Maharashtra deal highlights the ever-evolving trends of industrial self-reliance in steel manufacturing.
In a noteworthy move aimed at securing long-term energy stability, Evonith Steel has now expanded its energy footprint through power asset acquisition. It has completed the acquisition of Maharashtra-based Indrajit Power Pvt Ltd. (IPPL) for a whopping ₹232 crore through the Insolvency and Bankruptcy Code (IBC) process. The deal, which has been approved by the National Company Law Tribunal (NCLT), brings an 85 MW coal-based power plant under the steelmaker’s control and marks another example of industrial companies integrating energy assets into their core operations.
The acquisition is also noteworthy because the power facility is located adjacent to Evonith Steel’s manufacturing complex in Wardha, Maharashtra. This proximity will help the company streamline power supply while reducing transmission-related inefficiencies.
Evonith Steel brings Indrajit Power into its portfolio.
By bringing Indrajit Power into its portfolio, Evonith Steel aims to secure a reliable and cost-effective electricity supply for its existing operations as well as future expansion plans. The company currently operates an integrated steel manufacturing facility in Wardha with a production capacity of approximately 1.4 million tonnes per annum. Its operations span products including hot metal, pig iron, hot-rolled coils, cold-rolled coils, and galvanised steel. Industry observers note that captive or closely integrated power assets can offer steel producers a competitive advantage by reducing dependence on external energy markets, particularly during periods of price volatility.
Over the past few years, several companies across the power, steel and infrastructure sectors have used the IBC route to acquire stressed assets and strengthen operational capabilities. For Evonith Steel, the acquisition goes beyond adding a power plant. It represents a broader strategy focused on operational integration, cost optimisation and long-term capacity expansion. The company has recently undertaken efforts to improve its financial flexibility and support growth initiatives, signalling ambitions to further scale its manufacturing footprint.
A step toward greater industrial integration.
As Indian manufacturers increasingly prioritise energy security, acquisitions such as this reflect a wider shift toward vertical integration. For steel producers, reliable access to power is becoming as critical as access to raw materials.
The addition of Indrajit Power is expected to strengthen Evonith Steel’s operational resilience while supporting future production growth. More broadly, the transaction illustrates how strategic acquisitions of distressed assets continue to reshape India’s industrial landscape, enabling companies to build stronger and more self-sufficient business models.
