Liberty House on Buying Spree in India

In a recent development New Delhi-based Amtek Auto who owes over INR 12,300 crore to its lenders. The lenders have taken a 67% haircut to allow Liberty’s binding offer of about INR 4,400 crore, which includes cash and bank guarantees. “Liberty is set for a major automotive growth following the NCLT nod for Amtek Auto resolution plan,” the Liberty House spokesperson added.

“This is a very significant moment. We are very excited about this opportunity to restore a great Indian business to its rightful position and add a major new asset portfolio to our international network,” said a Liberty House spokesperson. Liberty House is part of the Sanjeev Gupta-led global industrial group GFG Alliance. “Liberty House… is set to make a dramatic entry into India after being chosen as the preferred H1 bidder for Amtek Auto assets, which include 35 automotive component plants across India, Japan, Thailand and Spain, employing some 6,000 people,” the company was quoted to PTI.

Business runs in the veins of Sanjeev Gupta which is metamorphosed into Liberty House; a global commodities company, which operates from London, Dubai, Singapore and Hong Kong, and further bases in over 30 countries. Born in India, the third of four children, Sanjeev has been “born into business” trailing his father around his companies. He founded Liberty House as a metal trading company in 1992 from his student flat while at Cambridge University, where he studied economics and management and once making £1m in a day.

Steel360 had an opportunity to have a definitive talk a few months back with Liberty House Executive Chairman, Mr. Sanjeev Gupta, Interview excerpts

How would you define Liberty House? 

We are an International group of businesses with presence across 30+ countries in five continents. Our mission is to establish ourselves as a steel producer, aluminum producer, auto and aerospace components producer, steel & metals trader or rather trade services provider. We do it through the use of local resources, sustainable energy and investment and technology skills.

Your interests have moved from steel & have diversified your business like the buying of Tungsten bank, power, how do you see the growth of Liberty house? iberty-house-on-buying-spree-in-india

Banking is another part of Wyelands financial services, which is another arm of GFG Alliance. We have liberty house, our industrials group, SIMEC which is our natural resources group including vessels, ports, mining, power and energy trading, Wyelands financial services including a bank, fund management and advisory, and last but not least JAHAMA estates the fifth largest land owner in the UK. The diversification has always been a key driver to our growth. There are many synergies in bringing the businesses together with Liberty and SIMEC. They are complementary to GFG’s strategy to own each element of the value chain, from iron ore and scrap metal feedstock to delivering steel product and service solutions to our customers.

Liberty House has been very active in buying steel assets in Europe. What makes it so bullish? 

Each acquisition has its merits, it’s difficult to generalize the scope.  The acquisitions fulfil the Group’s strategic objective of increasing the ownership of the value chain, and the extension of its positing within it by capturing increased value from this suite of assets.

What are the other countries Liberty House is planning to expand its presence as steel producer? 

We are looking at opportunities in the UK, Europe, US, AUSTRALIA, ASIA.

Indian steel industry is under stress due to debt issues. Is Liberty House exploring opportunities in India? 

Yes, we are exploring opportunities in India as well. India has a good growth story and we are trying to find synergies in the same.