Arjas Modern Steel Private Limited, under the complete ownership of speciality steel manufacturer Arjas Steel Private Limited, has signed a definitive agreement with Modern Steels Ltd, to acquire its 100 percent of all steel, heat treatment and auto component businesses of Modern Steels. The deal will be effectively implemented post the completion of all closing formalities.
This strategic partnership will benefit both parties, with other components taken care of, Modern Group shall have the opportunity to focus on their core auto components business simultaneously equipping Arjas Steel to serve its customers efficiently after adding capabilities in North India. This partnership in the long term shall aid both companies to develop new grades and components, as well as offer better products and services to their automotive customers.
“The deal gives Arjas Steel a manufacturing platform in North India and enables us with additional capabilities to serve our customers in a much more effective manner,” said Sridhar Krishnamoorthy, Managing Director, Arjas Steel. Independent of this development, Arjas Steel will continue its investments and growth strategy for its current operations at Tadipatri, Andhra Pradesh, where it operates a three lakh tonnes per year integrated plant, responsible for the manufacturing of special steel bars for automotive, energy, railways and defence applications.
Arjas Steel (formerly Gerdau Steel India) is an integrated steel plant and one of the leading manufacturers of alloy steel in the country. Arjas Steel offers various carbon, alloy and micro-alloy steels in various profiles for critical applications in the automotive, energy and other sectors, in rolled, cold finished and heat-treated condition. On 1 November, Arjas Steel which was conceived post acquisition of Brazilian steel firm Gerdau’s Indian arm, Gerdau Steel India last year, announced their embarkment on a four-year roadmap to expand capacity in the country.