Dastur

Investment Advisory

"Dastur has the unique blend of business, technology, economic and financial expertise for framing practical operational strategies to improve the competitiveness of the global steel industry. ..."

Peter Marcus
- World Steel Dynamics

  • Abhijit Sarkar

    - Vice President

Challenges

We have carried out asset restructuring and turnaround analysis and support for over 20 Billion $ worth of assets, notably in the steel sector. In many industries like steel, global overcapacity and low demand have squeezed cash flows, increasing the amount of bad debt in this sector. Indian steel sector accounts for 30% of the total non-performing assets (NPA). Similarly, the power sector in India has over 40 Billion $ of stressed assets that needs to be resolved.

Although, this presents an opportunity to acquire assets at a low cost, the ability to craft good returns depends on selecting the right asset with the ability to reorganize it with a mix of the right technology, process, practices, management and products.

We assist in investing decisions by answering the right questions such as what is the right plant size and investment value in the plant? What will be the go-to technology based on the process economics playout? What is the normalized EBITDA and return projections?

We are a consulting engineers at core with in-depth understanding of finance of process industries. We partner with firms and Lenders to create long-term and sustainable solutions.

Dastur's Viewpoints

Private Equity Investment : Many companies have state of the art manufacturing facilities and their low equity value gives an opportunity to acquire at low price. We work with Investors to identify, assist in acquiring, restructure product basket, and operate the assets for them. For eg: By commissioning 0.6 MT plate mill for a 1.6 MT DR-EAF steel plant, we could increase the exit enterprise value for our investor by 30%.



As a consulting firm which has worked on various processes in the basic industry, we can design merger and acquisition solutions which are synergistic and complementary, thus reducing operation costs, increasing market reach and revenue, and boosting cash flows and returns.

Copyright @ 2020 M. N. Dastur & Company (P) Ltd.