September 08, 2008

Kirloskar Brothers takes over management of Kolhapur Steel

Pump manufacturer Kirloskar Brothers announced that it has taken over the management of Kolhapur Steel to meet its captive steel requirements. It would use capacity of Kolhapur Steel for meeting its captive demand to boost production as well as to cater to additional customers.

It would deposit INR 14.86 crore to repay Kolhapur Steel's debt. The share purchase agreement will be executed upon the approval of BIFR

Kolhapur Steel is a firm listed with Board of Industrial and Financial Reconstruction. Kolhapur Steel is engaged in manufacturing of alloy steel castings catering to sugar, cement, steel, pumps, marine, earth moving and other general engineering industries sectors and has a capacity of 300 tonnes per month.

Earlier this month, BIFR passed an order for induction of directors nominated by Kirloskar Brothers on the board of Kolhapur Steel. Kirloskar Brothers would take over the management of the Kolhapur Steel by inducting directors nominated by the company on the steel firm's board, it said.