The steel and raw material producer, Bhuwalka Steel Industries Ltd (BSIL) has taken a major leap towards the backward integration facilities which would enable it to produce steel through primary route. The company is currently producing steel through secondary route only.BSIL has taken over about 3 lakh equity shares of Rs 100 each at Rs 334 per share in Benaka Sponge Iron Pvt. Ltd, Bellary (BSIPL) by way of all cash deal at a total consideration of Rs 10.02 crore. BSIPL is strategically, located in Belagal Village, Bellary, having proximity to iron ore belt yielding logistic advantage. The acquisition will enable the Company to have backward integration and have synergy with the operations of the company.Benaka has at present 2 kilns of coal based sponge iron plant of the capacity of 100 MT per day each. With this takeover, it will have access to sponge iron to the tune of 60,000 MT pa. In next phase, the company is planning to generate power through hot gas recovery for captive consumption by the group. It is also planning to enter into green power generation by setting up a power plant with a capacity of 10-12 Mw with waste heat as feed stock along with chardust (byproduct) and coal.
