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Private Sector | Multi State - India | PID: 202837
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Sandur Manganese and Iron Ore will enter into the speciality steel sector in India, with the acquisition of Arjas Steel. The company is among the top five producers of speciality steel products in the country.
The move is in line with its strategic growth approach. Sandur Manganese will buy an 80 percent stake in the company for Rs 3,000 crore. It will spend around Rs 2,400 crore through a mix of equity and debt to buy Arjas Steel, of which around 25-30 percent will be in debt mode. A fourth of the acquisition will be funded via internal accruals.
The acquisition is set to be completed in four to five months, and once done, both Sandur Manganese and Arjas Steel will have similar turnover. It will be an important entity for Sandur, accounting for 50-60 percent of the overall revenue. Sandur Manganese has been into iron and manganese ore mining and recently expanded its capacities.
Arjas Steel operates two plants in India, one in Andhra Pradesh, and an electric arc furnace in Punjab through a wholly-owned subsidiary. The two plants have a combined capacity of 5,00,000 tonne currently. At the Andhra Pradesh unit, the capex committed to increase capacity to 4,00,000 tonne from 300,000 tonne also includes the setting up of a 20 MW renewable energy plant, was started last year, and will be completed over the next five-six months.
| Updated on: 04 - May - 2024
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