Bharat Forge subsidiary enters into agreement to acquire Indo Shell Mould's SEZ Unit in Erode
Jan 02, 2023
New Delhi [India], January 2 : Bharat Forge on Monday announced that its step-down subsidiary J S Auto Cast Foundry India has entered into a business transfer agreement (BTA) with Indo Shell Mould Limited ("ISML") for acquiring their SEZ Unit in SIPCOT in Tamil Nadu's Erode.
The closing of the transaction is subject to customary conditions and regulatory approvals, Bharat Forge said in a regulatory filing on Monday.
The Special Economic Zone unit with a capacity of 42,000 million tonnes per annum (MTPA, supplies fully machined critical castings to marquee customers in the automotive industry and will operate as the 3rd manufacturing unit of Bharat Forge's JS Auto.
This would take the capacity at JS Auto to 142,000 MTPA.
"This acquisition strengthens JS Auto's presence in the castings sector, expands the product offering and client base and enhances its footprint in the Indian manufacturing landscape. The acquisition will be EPS (earnings per share) accretive from the 1st year itself," the filing said.
Pune-based multinational Bharat Forge provides critical components and solutions for several sectors including automotive, power, oil and gas, construction and mining, rail, marine, defense and aerospace.
