In a bid to take a concrete step to develop steel industry, India’s Adani Group and South Korean steel major POSCO have signed an agreement to set up an integrated steel mill at the western state of Gujarat. As per the reports, Adani has group has informed that the investment under the MoU is estimated to be up to USD 5 billion.
Adani and POSCO join hands
Gautam Adani, Chairman of the Adani Group stated, “We are very pleased to announce the partnership with POSCO, the world’s most efficient and advanced steel manufacturer, in steel production and carbon reduction,”
Indian conglomerate Adani Group, while giving statements reported that “It has agreed to explore business cooperation opportunities, including the establishment of a green, environment-friendly integrated steel mill at Mundra, Gujarat, as well as other businesses.”
It further noted that “The non-binding MoU aims at further collaborate at the group business level in various industries such as renewable energy, hydrogen, and logistics in response to carbon reduction requirements.”
Adani Group expanding conglomerate into metals
The Adani conglomerate is dramatically elevating its solar energy portfolio and its ports business with an aim to become carbon neutral by 2025. The past two decades has witnessed rapid diversification into ports, power generation and distribution, airports, data centers and digital services for the group. Adani, Asia’s second-richest person, has also been focusing on expanding his conglomerate into metals.
Read more: Adani is untouchable only if he makes a deal with a BJP Government
The Adani group controls India’s largest port- Mundra in Gujarat- and apart from port business, the group’s interest includes power generation and transmission, edible oil, real estate, defence and the latest- data storage.
It has also announced an investment plan to become the world’s largest renewable energy company and produce green hydrogen in the future.
India – South Korea ties
Indian trade relations with South Korea has grown exponentially in recent years and reached to 20 billion dollars in 2017. Since CEPA was signed, bilateral trade between both countries has grown with double digit every year.
Read more: Seoul Peace prize to PM Modi indicates the boost in India-South Korea ties
Major exports of India to South Korea are raw materials including mineral fuels, oil distillates (mainly naphtha), cereals, iron and steel. On the other hand, South Korean exports to India are automobile parts, telecommunication equipment, hot rolled iron products, petroleum refined products, base lubricating oils, nuclear reactors, mechanical appliances, electrical machinery and parts, and iron and steel products. Samsung, Hyundai, Posco, LG and Kia are the major South Korean companies operating in India.
South Korea wants to enhance its relation with nations on the southern side of the globe through ‘new southern policy’ and India is one of the nations in focus. And, Adani Group seems to be ensuring the same.