Kirloskar Ferrous Industries to acquire pig iron plant of VSL Steels
Kirloskar Ferrous Industries informed the bourses during the weekend that its board of directors at a meeting held on September 12, 2020, has granted in-principle approval for the acquisition of movable & immovable assets relating to the pig iron plant of VSL Steels for a cash consideration of not exceeding Rs 135 crore, payable in installments.
The abovementioned plant is situated in Paramenahally village of Hiriyur, Chitradurga district in the state of Karnataka.
The object of the proposed transaction is to expand the production capacity of the Pig iron of the company. After the completion of this transaction, the production capacity of pig iron will increase from 3,91,400 metric tonnes per annum to 5,41,400 metric tonnes per annum.
The purchase consideration of Rs 135 crore will be exclusive of applicable taxes, duties, and charges thereon and will be financed partly by way of borrowings and partly by way of internal accruals. The proposed transaction is expected to be completed in two stages; viz. the operations of the Pig iron plant are expected to commence within six months and that of the sinter plant, within 18 months.
Kirloskar Ferrous Industries (KFIL) was formed with the intention of transforming the high-quality Pig iron and Grey iron casting industry.