India’s steel industry, a linchpin in the country's manufacturing and infrastructure sectors, is currently witnessing a strategic recalibration by global players. With rising demand for high-quality processed steel and increasing competition among domestic and multinational entities, consolidation and streamlining have become key themes. POSCO Group, one of the world's foremost steel manufacturers, is reorganizing its operations in India to enhance efficiency, reduce duplication, and reinforce its leadership in value-added steel production.
The latest move, finalized in early 2025, is part of a broader plan to simplify corporate structures and bring operational clarity across its Indian subsidiaries. The acquisition also reflects global market pressures and the need for greater intra-group synergy to meet the burgeoning demands of automotive, construction, and industrial steel users in South Asia.
Who’s Involved?
At the center of this transaction is LX International Corporation, a Korean conglomerate known for global trade, raw materials logistics, and investment services. The buyer, POSCO India Processing Center Private Limited, is a fellow subsidiary under POSCO Holdings Inc., the umbrella entity of the POSCO Group. Both companies are closely aligned in mission and operation, especially in processing hot-rolled coils, cold-rolled sheets, galvanized steel, and specialty alloys.
Legal advisory was provided by JSA Advocates & Solicitors, one of India’s premier law firms. The deal was steered by Anand Lakra (Lead Partner), supported by Niharika Mepani (Partner), Jinay Shah (Senior Associate), and others across taxation and competition law teams including Kumarmangalam Vijay, Vaibhav Choukse, and Nripi Jolly. The transaction received approval from the Competition Commission of India (CCI) on February 4, 2025, marking its official legal greenlight.
Structure of the Deal
The transaction involved the full divestment of LX International’s 35% stake in POSCO-India Pune Processing Center (IPPC) to POSCO India Processing Center, consolidating ownership under a single entity within the POSCO Group. This intra-group acquisition enables operational simplification, smoother financial reporting, and unified governance in POSCO’s India strategy.
The divestment was executed through a private share transfer agreement, reviewed and vetted by Indian regulatory authorities, ensuring compliance with foreign investment norms and sector-specific operational standards. The seamless structure of the deal highlights the maturity of POSCO’s Indian footprint and the cooperation among related entities under its umbrella.
Why It Matters for POSCO
For POSCO, India is one of the key strategic markets outside of Korea, owing to its rapidly growing steel consumption and infrastructure push. POSCO-IPPC, based in Pune, plays a critical role in supplying tailored steel solutions to automobile manufacturers and heavy machinery producers across western and central India.
The full integration of IPPC under POSCO India Processing Center enables better inventory control, centralized decision-making, and faster response to customer demands. It also aligns with POSCO’s “One India” vision to present a unified brand and supply network to Indian clients.
JSA’s Multifaceted Legal Role
JSA Advocates & Solicitors played a crucial role in ensuring the legal, regulatory, and tax compliance of the transaction. The firm’s Corporate, Taxation, and Competition teams collectively managed due diligence, structuring, tax strategy, and securing CCI clearance. Their coordinated efforts helped streamline the divestment, keeping the process aligned with India's corporate legal framework.
"Given the intra-group nature of the transaction and its sectoral importance, it was imperative that every procedural and compliance aspect was tightly managed," remarked a JSA spokesperson. Their role also extended to advising on anti-trust implications to ensure the transaction posed no market distortion.
POSCO’s Future Plans in India
With this integration, POSCO is expected to further invest in its Indian operations, potentially upgrading its steel service centers with automation, smart processing systems, and higher-capacity galvanizing lines. The Group is also evaluating partnerships with Indian automakers and renewable energy sectors, as demand grows for lightweight and corrosion-resistant steel products.
Analysts suggest that this deal might be the first of several internal consolidations POSCO could undertake in India, as part of its broader Asia-Pacific realignment strategy. POSCO’s commitment to sustainability, carbon-neutral steel (low-CO₂ products), and innovation will likely shape its next phase of growth in the subcontinent.
Key Takeaways:
• LX International sold its full 35% stake in POSCO-India Pune Processing Center Pvt. Ltd.
• The buyer, POSCO India Processing Center Pvt. Ltd., is a fellow subsidiary under POSCO Holdings.
• The deal was approved by India’s Competition Commission on February 4, 2025.
• JSA Advocates & Solicitors provided comprehensive legal and regulatory advisory services.
• The move strengthens POSCO’s operational control and market strategy in India.
• IPPC focuses on hot-rolled coils, cold-rolled coils, galvanized steel, and specialty steel products.
