Business Daily from THE HINDU group of publications
Wednesday, Feb 27, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Wednesday, Feb 27, 2008 ePaper | Mobile/PDA Version |
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Corporate
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Mergers & Acquisitions Bhuwalka Steel buys Benaka Sponge Our Bureau Bangalore, Feb. 26 Bhuwalka Steel Industries Ltd has acquired Benaka Sponge Iron Pvt Ltd for Rs 9.9 crore in an all-cash transaction. Benaka will become a subsidiary of Bhuwalka Steel enabling the group to step into steel making through the primary route by integrating facilities under one roof. Benaka is located in the iron ore belt of Bellary district and would enable the company establish link with raw materials from close by sources to improve its margins. The company also plans to relocate its two units at Bangalore and Kancheepuram to Belegal Village, where the Benaka plant is located, to consolidate and save its operational costs. It has already tied up for 45 acres of land to consolidate its facilities in the new unit. However, it has decided to continue its operations of the Wada unit in Thane district with an increased capacity of 2.92 lakh tonnes from 2.04 lakh tonnes. Mr Suresh Kumar Bhuwalka, Managing Director of Bhuwalka Steel, said: “With the takeover of Benaka, the company will have access to sponge iron to the tune of 60,000 tonnes per annum immediately and also this site will be available for future growth”. Mr Bhuwalka said the company aims at tapping the telecom sector and expects to supply about one lakh tonnes to tower manufacturers in the telecom and power sectors, while continuing to be an important player in the construction sector. More Stories on : Mergers & Acquisitions | Steel
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