Kirloskar Ferrous to acquire pig iron plant of VSL Steels

Will pay Rs 155 cr in cash for the unit

Kirloskar Ferrous Industries today said it will acquire VSL Steels's pig iron plant for Rs 155 crore in cash.

"Board at its meeting on July 28, has granted in-principle approval for acquisition of movable and immovable assets relating to pig iron plant of VSL Steels Ltd for a cash consideration of Rs 155 crore," Kirloskar Ferrous Industries said in a regulatory filing.

The amount will be payable in installments and will be subject to certain commercial conditions, necessary governmental or regulatory approvals and the approval of the Board and shareholders of VSL Steels Ltd, it added.

Kirloskar Ferrous Industries Ltd (KFIL), part of the Kirloskar Group, is in the business of pig iron and castings with its core products being pig iron, grey iron castings and S.G iron castings.

The company has two manufacturing plants -- one at Koppal district in Karnataka and another at Solapur in Maharashtra. It caters to industry sectors such as tractors, automotives and diesel engines.

VSL Steels Ltd (formerly SLR Steels Ltd) manufactures pig iron and is part of the VSL Group.