The world's largest steelmaker, ArcelorMittal Netherlands BV, will co-promote Mumbai-based Uttam Galva Steels, in which Miglani family currently owns 40.71 per cent shares.

Uttam Galva's board has given its nod to the co-promotion agreement, paving the way for ArcelorMittal, having presence in 60 nations, to strengthen its position in the Indian market.

As per the deal, both companies would have certain veto rights based on some conditions, and both are entitled to nominate one-half of the non-independent directors of the company.

Mr Rajinder Miglani-promoted Uttam Galva Steel was set up in 1985. It is the largest cold rolled and galvanized steelmaker in western India, having a capacity to produce
750,000 tonnes a year of galvanized steel.

The manufacturer-exporter of value-added steel products, Uttam Galva Steel, having equity capital is Rs 113.97 crore, is investing around Rs 9,000 crore for setting up another facility in Maharashtra, besides its existing manufacturing facility at Khopoli.

The Rs 4,500 crore company, which is a major player of galvanized coils and sheets in India, reported a 39 per cent rise in net sales for the year ended March 31, 2009.