Electrotherm (India) Ltd, the Ahmedabad-based induction melting furnace maker, on Thursday announced selling its ductile iron pipe business to the French major Saint-Gobain.

In a statement, Electrotherm said here that it has executed binding agreements pursuant to which Saint-Gobain Produits Pour La Construction SAS, France, will acquire the DI pipe business and 100 per cent stake in a subsidiary of Electrotherm for Rs 950 crore, plus the value of working capital at closing.

The transaction will be subject to the terms and conditions as set out in the binding agreements entered into by the parties.

The transaction will enable Electrotherm to focus on its core businesses of engineering and steel and also to reduce debt. “Our facilities will allow Saint-Gobain to cater to domestic and international markets,” said Mr Avinash Bhandari, Joint Managing Director, Electrotherm (India) Ltd.

KPMG Corporate Finance was the exclusive financial advisor to Electrotherm (India) Ltd.

Founded in 1986, Electrotherm is now India's largest manufacturer of induction melting furnaces and refining equipments. More than 18 million tonnes of steel are produced on equipment supplied by Electrotherm every year.

The company diversified into steel manufacturing in 2005 and achieved sales of over Rs 2,300 crore in FY 2010-11. The company is also a leader in India in the electric two wheelers manufacturing segment.