Calcutta, Oct. 20: European steel giant Arcelor has decided to venture into India, following in the footsteps of other global companies ? Mittal Steel and Posco.

The company is now working out a strategy to enter the country.

Alain Davezac, vice-president of international business of Arcelor, France, said the strategy could be decided within six months.

“We have taken an in-principle decision to come to India. The company is now in the process of evaluating how to go about it,” he added.

India is a growing and potentially attractive market, Davezac said on the sidelines of the Steel Metallics seminar organised by Metal Bulletin and metaljunction here today.

“It is a cost-competitive production area and a major zone of iron ore reserves,” he added.

However, Arcelor feels that expensive freight and lack of coking coal are some of the challenges facing this industry.

It is also concerned about high electricity prices, environmental restrictions and bureaucracy.

Currently, the company is busy with two new acquisitions at Turkey and Ukraine.

Given the large size of the deals, especially the one in Ukraine, the company is expected to complete the acquisitions before venturing into India. “We do not want to hurry since there is so much on the platter. But even then, the decision could be taken well before the middle of 2006,” Davezac added.

However, Arcelor will face challenge from Mittal Steel and Posco, the two other giants that have firmed up plans.