Kataria Industries Expands Presence In Steel Wire Industry With Strategic Acquisition

Kataria Industries Limited is happy to announce that it has acquired Ratlam Wires Pvt. Ltd.'s Wire Division as a going concern, slump sale. Kataria can improve its product line and increase its presence in the steel wire sector thanks to this strategic acquisition, which supports the company's growth goals. The acquisition of Ratlam Wires Pvt. Ltd.'s Wire Division improves Kataria Industries' standing in the steel wire industry.

Because of the two companies' synergy, Kataria will be able to serve a wider range of industries, such as the railway and automobile sectors. The acquisition is anticipated to improve Kataria Industries Limited's top and bottom lines by producing an EBITDA margin of around 3.5% to 4.5%.

According to the unaudited financials of October 21, 2024, Kataria Industries Limited would pay Rs 306.00 million in total consideration for the Wire Division, while the Net Asset Value (Net Worth) is Rs 302.70 million.

"This is to inform you that the Board of Directors of the Company has, in their Board Meeting held on today, i.e. on Tuesday, October 22, 2024, at the Registered Office of the Company, inter alia, approved the proposal to acquire the business undertaking pertaining to the Wire Division ("Undertaking") owned by Ratlam Wires Private Limited (the "Seller"), situated at Ratlam in the State of Madhya Pradesh, on a 'slump sale' basis (within the meaning of such term under Section 2(42C) of the Income-tax Act, 1961) ("Slump Sale") as a 'going concern' basis for an aggregate lump-sum purchase consideration of Rs. 306.00 Million (Rupees Three Hundred Six Million only), inclusive of all the assets (including Lease Hold Land) and liabilities pertaining to Undertaking, as specified in the Agreement for Sale of Undertaking under Slump Sale, with effect from October 22, 2024, in such manner and on such terms and conditions as specified under the Agreement for Sale of undertaking under Slump Sale executed / to be executed in relation to the aforesaid transactions (collectively, the "Transaction")," said the company in a stock exchange filing.

Mr. Arun Kataria, MD, Kataria Industries Limited: "We are excited about the acquisition of Ratlam Wires' Wire Division, which is expected to enhance our Turnover and margins through the combined synergies of both businesses. This move is perfectly aligned with our long-term growth strategy and will enable us to better serve a wider range of industries."

Steel Wires, Post-tensioning (PT) Anchorage Systems, HDPE Single Wall Corrugated (SWC) Sheathing Ducts, Couplers, Aluminium Conductors, and Low Relaxation Pre-stressed Concrete (LRPC) Strands are all manufactured and supplied by Kataria Industries Limited. Infrastructure, highways, bridges, flyovers, metros, railways, high-rise structures, atomic reactors, LNG tanks, and electricity transmission and distribution lines are just a few of the industries that use the products.