SunCoke officials said it would invest about RS368 Crores, or $US67 million, to acquire a 49% interest in the deal.
Visa Steel will hold the remaining 51%.
The joint venture, to be unlevered at closing, will include Visa’s existing 400,000Mtpa heat recovery coke plant and steam generation units at Kalinganagar in Odisha, India.
The transaction is projected to close sometime in next year’s first quarter, and it pending certain conditions such as Visa shareholder approval.
“The demand for coke from large and medium-size steel producers has been increasing substantially and there is a potential to grow the coke business on a standalone basis,” Visa chairman Vishambhar Saran said.
SunCoke chairman and chief executive officer Fritz Henderson said the JV was an opportunity to grow its international footprint and establish a cokemaking presence in India.
“We believe that the coke industry in India is a key market that offers us attractive growth opportunities,” he said.