Kirloskar Ferrous Industries Limited (KFIL), one of the leading castings and pig iron manufacturers in India, announced the Scheme of Arrangement and Merger to amalgamate and consolidate the entire Undertaking business and operations of Indian Seamless Metal Tubes Limited (ISMT).
Commenting on the merger, Atul Kirloskar, Chairman, KFIL, said, “We acquired ISMT in March 2022, to enter into the seamless tubes market. For KFIL this was a step towards forward integration and product diversification. On the other hand for ISMT this was a step towards backward integration. This acquisition has brought us an opportunity to integrate iron ore to seamless tubes. Now taking a step further, we are proposing to integrate the entire business under the umbrella of Kirloskar Ferrous Industries Ltd. to reap the synergies between the two businesses.”
Commenting on the rationale of this merger, R.V.Gumaste, Managing Director, KFIL, said, “As we complete two-quarters of the full operations of ISMT post-acquisition, our team has ensured smooth operations and is confident to move ahead in line with our expectations. We believe, the merger will result in a financially robust entity with a broader customer base covering the entire value chain. This will also help us improve operational efficiencies through standardization and simplification of business processes.”
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