Mumbai: Sumitomo Corporation of Japan has acquired a 49 per cent stake in joint venture Mukand Sumi Special Steel for Rs 1,180.99 crore.

Mukand Sumi Special Steel will be a specialty steel supplier for the fast growing automotive and engineering industries and Mukand will retain a 51 per cent stake in the joint venture company.

The joint venture is engaged in the business of rolling, finishing and marketing of alloy steel wire rods and bars made from blooms and billets procured exclusively from Mukand's Hospet plant in Karnataka.

The joint venture has 100 acres of land adjoining Mukand's existing plant at Hospet for the proposed construction and commissioning of new steel rolling facilities by mid 2020 at a cost of around Rs 600 crore.

The JV is banking on the strong potential of the automotive sector in India, which has grown in 2017-18. Further, the auto component sector in India is a Rs 3 trillion industry, currently exporting Rs 74,000 crore annually.