Bhuwalka Steel Industries Ltd has informed that the Board of Directors of the Company at its meeting held on February 25, 2008, has considered various options available for inorganic growth by way of acquisition of business having synergy with the operations of the Company to encash the opportunities in the steel sector at the backdrop of growth in Telecom, Power, Construction and infrastructure sector.
Taking over of Benaka Sponge Iron Pvt Ltd as a step to grow inorganically:
Keeping in mind the long term strategy and inculcating the same into short term plans, the Board of Directors of the Company at their meeting held on February 25, 2008, have cleared the taking over of Benaka Sponge Iron Pvt Ltd., Bellary, by way of all cash deal of INR 990 Lacs. Takeover of operations of Benaka Sponge Iron Pvt Ltd (Benaka) is viewed as a first step towards backward integration by the GROUP.
Benaka is strategically located in Belagal Village, Bellary, which is very close to iron ore mining belt. Benaka has at present 2 Kilns of coal based sponge iron plant of the capacity of 100 MT per day each. A green field project of similar size will cost about INR 3000 Lacs and gestation period would have been minimum 18-24 months. With this takeover, the Company will have access to sponge iron to the tune of 60,000. MT p.a. immediately and also this site will be available for future growth. Due to close proximity of this unit to the iron ore mines, there will be great logistic advantages in terms of time and value.
Taking over of Benaka Sponge Iron Pvt Ltd as a step to grow inorganically:
Keeping in mind the long term strategy and inculcating the same into short term plans, the Board of Directors of the Company at their meeting held on February 25, 2008, have cleared the taking over of Benaka Sponge Iron Pvt Ltd., Bellary, by way of all cash deal of INR 990 Lacs. Takeover of operations of Benaka Sponge Iron Pvt Ltd (Benaka) is viewed as a first step towards backward integration by the GROUP.
Benaka is strategically located in Belagal Village, Bellary, which is very close to iron ore mining belt. Benaka has at present 2 Kilns of coal based sponge iron plant of the capacity of 100 MT per day each. A green field project of similar size will cost about INR 3000 Lacs and gestation period would have been minimum 18-24 months. With this takeover, the Company will have access to sponge iron to the tune of 60,000. MT p.a. immediately and also this site will be available for future growth. Due to close proximity of this unit to the iron ore mines, there will be great logistic advantages in terms of time and value.
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