Japan-based Daido Steel Co., Ltd has announced that it reached an agreement on July 9 to buy a 10 percent stake in Indian specialty steel producer Sunflag Iron and Steel Company Ltd for approximately JPY 1 billion ($9.87 million).

According to Daido Steel, the Indian specialty steel market is expected to witness significant growth thanks to increasing demand from the automotive industry and it is also expected to serve as an export base for regions such as Europe and Southeast Asia.

Sunflag Iron and Steel produces stainless and structural steel products with an annual output capacity of 300,000 mt.