Kirloskar Ferrous Industries gets nod to acquire pig iron plant of VSL Steels
14th Sep 2020

Kirloskar Ferrous Industries has received an approval for acquisition of movable and immovable assets relating to the pig iron plant of VSL Steels situated at Paramenahally Village, Hiriyur, Chitradurga District, Karnataka State for a cash consideration of not exceeding Rs 135 crore payable in installments. The object of proposed transaction is to expand production capacity of Pig Iron of the company. After completion of the 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. Proposed Transaction is expected to be completed in two stages; viz. operations of pig iron plant are expected to commence within six months and that of sinter plant within 18 months. The Board of Directors of the company at its meeting held on September 12, 2020 has granted its in-principle approval for the same. 

Kirloskar Ferrous Industries (KFIL) was formed with the intention of transforming the high quality Pig Iron and Grey Iron casting industry. With a parent company that possesses a rich 130year manufacturing and engineering legacy, KFIL has been built on a solid foundation of innovation and customer centricity.