Urja acquisition builds on Nithia’s earlier investments in Evonith Metallics Ltd and Evonith Value Steel Ltd, and follows the successful turnaround and exit from Crest Steel and Power Ltd, which was sold to Amalgam Steel.
Nithia Capital and its investment holding arm Evonith Holdings have completed the acquisition of Topworth Urja & Metals for ₹3 billion ($34 million), marking their third successful steel asset acquisition in India.
Located near Nagpur, Maharashtra, Urja is a 0.2 million tonnes per annum (MTPA) long products steel producer with integrated facilities spanning direct reduced iron (DRI), steelmaking, and rolling operations. The asset also includes 35 MW of captive power generation and key thermal coal mining licences. A substantial rehabilitation and growth capex plan is underway to scale steelmaking capacity to 0.5 MTPA and optimise power output.
“This acquisition is another strategic step toward building a world-class steel production base in India,” said Jai Saraf, Chairman of Evonith Steel and Founder & CEO of Nithia Capital. “Evonith Steel’s journey is growth-focused, both organically and inorganically. We aim to make Urja a leading long steel producer in the region, just as we’ve done with Evonith Steel at Wardha.”
Nithia acquired Evonith Steel in December 2020 when it was operating below 0.5 MTPA and incurring losses. Today, the company produces 1.4 MTPA across a broader product range, having completed key projects and improved profitability.
The acquisition of Urja follows earlier investments in Evonith Metallics and Evonith Value Steel, and the successful turnaround and sale of Crest Steel and Power to Amalgam Steel.
“The Urja acquisition diversifies our Indian asset base across both flat and long steel products,” said Rajib Ranjan Guha, Non-Executive Director of Urja and Partner at Nithia. “We look forward to enhancing production and restoring the asset to economic success. This transaction also reaffirms the effectiveness of India’s Insolvency and Bankruptcy Code.”