Close on the heels of Tata Steel acquiring companies abroad, Essar Steel board has proposed an enabling resolution to explore options to set up manufacturing facilities overseas, including acquiring companies.

The company intends to set up three subsidiaries abroad, with a capital of $1 million each to be funded through internal accruals. When contacted, an Essar Steel spokesperson confirmed this. No plans have been firmed up as yet regarding location of any facility, he added.

The company has reported a turnover of Rs 6,537 crore in 2004-05, for which exports have contributed 40%. Acquisition of an overseas facility will enable the company to supply steel in semi-finished format from India and enhance margins by manufacturing abroad closer to the end market, analysts said.