The Sandur Manganese & Iron Ores Limited (SMIORE) and Private Equity firm ADV Partners announced the execution of a binding agreement relating to the strategic business acquisition of Arjas Steel Private Limited (Arjas), valued at an enterprise value of ₹3,000 crore, by SMIORE, said a company statement.
SMIORE is the fifth-largest iron ore miner in Karnataka and the third-largest miner of manganese ore in India and is the flagship business of the royal family of Ghorpade.
According to a communique, Arjas is a special steel manufacturer primarily engaged in the business of manufacturing special bar quality (SBQ) steel focused on the auto sector in India. The company is among the top 5 special steel manufacturers in India supplying to automobiles sector. Arjas operates out of 2 plants spread across nearly 950 acres, its flagship manufacturing facility in Andhra Pradesh and another facility in Punjab through its wholly-owned subsidiary Arjas Modern Steel Private Limited.
Bahirji A. Ghorpade, Managing Director, SMIORE said, “This acquisition marks a significant milestone for SMIORE as we venture into steel and value-added products manufacturing. The acquisition will take us another step closer to our strategic transition from a merchant miner to an integrated commodity producer.”
