Kirloskar Ferrous has acquired a non-operating pig iron plant from VSL Steels for Rs1.35bn ($18.3mn). The acquisition will expand Kirloskar’s capacity by 38pc to 5.41mn mt annually from 3.91mn mt.
The transaction is expected to be completed in 18 months in two stages with operating goals set by the end of Q1 2022. The companies did not provide further details of the two stages of the transaction.
Karnataka-based Kirloskar Ferrous produces pig iron and iron castings with a focus on servicing mills with products in the automotive engineering sector. The company, which belongs to the Kirloskar Group, achieved net sales of Rs1.85tn with net profits of Rs1.12bn during the financial year ending on March 31, 2020.
VSL, also based in Karnataka, is part of the VSL Group, which has investments in real estate, iron ore mining, blast furnace, slag granulation, and a power plant.