India’s Arjas Modern Steel has fully acquired Modern Steel Limited (MSL) for Rs860mn ($11.6mn).
Under the agreement, the Arjas Steel subsidiary has bought all of MSL’s steel, heat treatment, and auto component assets at the latter’s plant in Punjab. The deal is expected to close within two months.
Arjas Steel plans to modernize and expand its 150,000mt Arjas Modern Steel site in North India with a total investment, which includes planned upgrades, of Rs125mn. Sridhar Krishnamoorthy, managing director at Arjas Steel, noted that the MSL acquisition will increase the company’s annual steelmaking capacity to 450,000mt in North India. Moreover, the acquisition will provide the company with access to leading automotive companies.
The Indian steelmaker plans to continue its growth strategy at its Andhra Pradesh site where it operates the 300,000mt integrated plant.
The new acquisition is expected to add Rs6-8bn, or 40-53pc, annually to the company’s corporate revenue line. Arjas was previously part of Brazil’s Gerdau Group but was acquired by ADV in 2018 for $120mn.
($1=INR74.41)