Kirloskar Ferrous industries, castings and pig iron manufacturer has acquired Oliver Engineering for Rs 110.55 crore to expand its casting capacity. It is the second acquisition by KFIL. Last year, Kirloskar Ferrous acquired a majority stake in Indian Seamless Metal Tubes (ISMT) for Rs 476.63 crore. ISMT is the largest integrated specialized seamless tube manufacturer in India.
Oliver Engineering is into ferrous casting and machining, with a manufacturing hub in Sandharsi, Rajpura in Punjab. Its present castings capacity is 28,000 MT per annum. R V Gumaste, managing director, KFIL, said the plant was non-operational and Kirloskar Ferrous would take four to five months to start the production. After that, they will take a call on further investments and expansion.
Gumaste said the acquisition seamlessly aligned with their strategic objectives and was a right fit for their current product portfolio within the casting sector. Kirloskar Ferrous caters to the tractor, automobile and diesel engine industries and has facilities at Koppal, Hiriyur in Karnataka and Solapur in Maharashtra. This acquisition gave them the opportunity to expand geographical reach and cater to the growing needs of our customers in Northern India.
The National Company Law Tribunal (NCLT) had, on September 12, approved the Oliver Engineering resolution plan. KFIL has concluded all necessary steps for acquiring management and operational control of Oliver Engineering by September 29. The Committee of Creditors comprised Punjab National Bank (42.63% voting share), Bank Of India (33.19%) and Bank Of Maharashtra (24.18%). The fair value of the Oliver Engineering was Rs 153.79 crore and the liquidation value was Rs 99.37 crore.