The SEZ unit of Indo Shell Mould Ltd, which is located in SIPCOT, Erode in Tamil Nadu, will be acquired by Bharat Forge’s step-down subsidiary JS Auto Cast Foundry, the firm announced without disclosing the price at which the deal was reached.
According to the Bharat Forge release, JS Auto Cast Foundry India and Indo Shell Mould Ltd. have agreed into a business transfer agreement for the purpose.
The company added that the acquisition will be EPS accretive from the first year itself. The SEZ Unit, with a capacity of 42,000 MTPA, supplies fully machined critical castings to marquee customers in the automotive industry and will operate as JS Auto’s third manufacturing unit, bringing its total capacity to 1,42,000 MTPA, the company said.
This news is written by Ms. Amrita Singh, Research Assistant, All India Legal Forum.