Evonith Steel Acquires Indrajit Power's 85 MW Wardha Plant for $28M

Why It Matters

By internalising power generation, Evonith reduces energy costs and mitigates supply disruptions, a critical advantage for energy‑intensive steel production and a signal of deeper vertical integration in India’s heavy‑industry sector.

Key Takeaways

• Evonith bought 85 MW coal plant for ₹232 crore ($28 M).
• Acquisition completed through IBC, NCLT approved on April 20.
• Plant sits next to Wardha steel complex, cutting transmission losses.
• Captive power will supply majority of Evonith’s energy needs.
• Supports planned capacity expansion and future ductile‑iron pipe production.

Pulse Analysis

Evonith Steel’s purchase of the 85‑megawatt Indrajit Power plant marks a strategic move toward self‑sufficiency in a sector where energy costs can dictate profitability. The ₹232 crore transaction—roughly $28 million at current exchange rates—was finalized via the Insolvency and Bankruptcy Code, underscoring how India’s legal framework is becoming a conduit for distressed‑asset turnarounds. By securing a power source that sits side‑by‑side with its Wardha steel complex, Evonith can bypass the volatile open‑market electricity grid, lower transmission losses, and lock in a predictable cost structure for its 1.4 million‑ton annual capacity.

The acquisition reflects a broader shift among Indian steelmakers toward captive power generation, especially as the industry grapples with rising grid tariffs and intermittent supply. While the plant remains coal‑based—a fuel type facing increasing regulatory scrutiny—it offers immediate, high‑capacity output that aligns with Evonith’s expansion timeline. The proximity of the plant to the steel mill simplifies logistics, reduces reliance on external utilities, and enhances operational resilience, all of which are vital for maintaining continuous hot‑metal production and meeting downstream demand for flat‑rolled and value‑added steel products.

Beyond the immediate energy benefits, the deal illustrates how the IBC is reshaping asset ownership in India’s industrial heartland. Successful resolutions like Evonith’s encourage other manufacturers to explore similar vertical integrations, potentially spurring a wave of captive‑power acquisitions across sectors. For Evonith, the secured power supply not only fuels its current operations but also underpins future diversification plans, such as launching ductile‑iron pipe manufacturing, positioning the company for sustained growth in a competitive global market.

Deal Summary

Evonith Steel completed the acquisition of Indrajit Power Pvt Ltd, an 85 MW coal‑based power producer in Wardha, for ₹232 crore (≈$28 million). The deal, approved by the National Company Law Tribunal on April 20, was finalized through the Insolvency and Bankruptcy Code process. The power plant will supply captive electricity to Evonith’s steel operations, reducing transmission losses and costs.