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Shakambhari Ispat and Power Ltd (SIPL), one of the fastest growing integrated steel manufacturing companies in Eastern India, announced the acquisition of SPS Steels Rolling Mills Limited, the sole owners of ‘Elegant Steel’; India’s No.1 QST bars. The acquisition press conference was addressed by Mr. Deepak Kumar Agarwal, Chairman cum Managing Director, Shakambhari Group, Mr. Naresh Agarwal, CEO, Shakambhari Ispat and Power Ltd (SIPL) and Mr. Ranjan Barma, Corporate Planning, BB&C Advisors.
SIPL has taken over the management of SPS Steels Rolling Mills Limited vide order passed by the National Company Law Tribunal Kolkata on 08.04.2019 in respect of the case no:- CA(IB) No. 871/KB/2018 in CP(IB) No. 595/KB/2017.The upfront payment to the creditors as required under the approved resolution plan has been completed by SIPL on April, 11th 2019.
SPS Steels Rolling Mills Limited is an Integrated Steel Plant having in-house facilities for TMT Bars and presently has an installed capacity of 1.8lakh tons per anum. The plant capacity was grossly underutilized at around 35% before the takeover. Post the acquisition by Shakambhari Ispat and Power Ltd(SIPL), who has infused skilled managers and working capital immediately after being inducted; the company has already achieved capacity utilization of 100%. Currently, SIPL is working to enhance the plant capacity to 3 lakhs tpa by taking up necessary plant modifications and process upgradation. SPS having joined the SIPL stable is currently generating employment for more than 1000 persons.
Speaking on the occasion, Mr. Deepak Kr Agarwal, Chairman cum Managing Director, Shakambhari Group, said, “Our main interest in SPS Steels Rolling Mills Limited was mainly on account of the strategic location of its plant and the brand equity associated with ‘Elegant Steel’, exclusively owned by SPS. It currently enjoys a strong network of 1000 dealers in the states of West Bengal and Assam. We aim to explore and expand the market share of Elegant Steel immediately in several states including North East, Jharkhand, Bihar, Odisha, Uttar Pradesh and further taking it to the Pan India market. ”
The current turnover of SPS is rupees 407 crores and it istargeted to touch rupees 1000 crores in the current financial year. An expected investment of 150 crores in the Durgapur Plant is also in the pipeline for the company where they aim to generate more development by providing employment opportunities through the manufacturing units and plant.