Arjas Steel Acquires Modern Steels Auto Businesses Assets
Steels through a slump sale via its wholly owned subsidiary Arjas Modern Steel, yet to be incorporated. Modern will have to get delisted from the exchange and Arjas will only take over its assets. Modern Steel has received a consideration of INR 86 crore from Arjas Steel and expects to complete the process by March 15 2021. Arjas Steel said "On November 15, a definitive agreement was signed between wholly-owned subsidiary Arjas Modern Steel Private Limited and Modern Steels Ltd, to acquire 100 per cent of all steel business, heat treatment business and auto component business of Modern Steels Ltd.”
Arjas Steel’s Managing Director Mr Sridhar Krishnamoorthy said “The acquisition will allow focusing on component business whilst enabling Arjas to enter in the North Indian markets. Arjas will make gradual investments aiming to stabilise, modernise and expand production at its newly formed subsidiary.”
Modern Steel, with a 150,000 tonne capacity per annum, registered a turnover of INR 211.84 crore in 2019-20. Arjas, with a capacity of 300,000 tonne, has registered a turnover of INR 1,300 crore in 2019-20. Arjas Steel formerly known as Gerdau Steel India, in its plant at Tadipatri produces special steel bars for automotive, energy, railways and defence application.