Kataria Industries Limited is pleased to announce the acquisition of the Wire Division of Ratlam Wires Pvt. Ltd. as a going concern through a slump sale. This strategic move is poised to enhance Kataria’s product line and strengthen its position in the steel wire sector, aligning with the company’s growth objectives. The acquisition is expected to enable Kataria Industries to better serve a diverse range of industries, including the railway and automobile sectors, due to the synergies created between the two companies.
According to the unaudited financials released on October 21, 2024, Kataria Industries will pay ₹306 million for the Wire Division, which has a net asset value of ₹302.7 million. The company’s Board of Directors approved the acquisition during a meeting on October 22, 2024. The acquisition is structured as a slump sale under Section 2(42C) of the Income-tax Act, 1961, and includes all associated assets and liabilities.
Mr. Arun Kataria, Managing Director of Kataria Industries Limited, expressed enthusiasm about the acquisition, stating, “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.”
Kataria Industries Limited manufactures and supplies various products, including 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. These products are utilized in numerous sectors such as infrastructure, highways, bridges, flyovers, metros, railways, high-rise structures, atomic reactors, LNG tanks, and electricity transmission and distribution lines.
Disclaimer: This announcement contains forward-looking statements regarding Kataria Industries Limited’s plans, expectations, and projections related to the acquisition of Ratlam Wires Pvt. Ltd.’s Wire Division. These statements are based on current beliefs and assumptions and involve risks and uncertainties. Actual results may differ materially due to various factors, including market conditions, regulatory changes, and the operational integration of the acquired division. The company undertakes no obligation to update or revise any forward-looking statements, except as required by applicable law. Readers are advised to conduct their own research and analysis before making any investment decisions.
Leave a Reply