Ratlam (Madhya Pradesh) [India] October 24: Kataria Industries Limited is pleased to announce the acquisition of the Wire Division of Ratlam Wires Pvt. Ltd. on a slump sale, going concern basis. This strategic acquisition is aligned with Kataria's growth objectives, enabling the company to enhance its product portfolio and expand its presence in the steel wire industry.
The acquisition of the Wire Division of Ratlam Wires Pvt.Ltd. strengthens Kataria Industries' position in the steel wiresector. Ratlam Wires manufactures a wide range of steel wireproducts, including Spring Steel Wires, PC Strand Wires and Galvanized and Ungalvanized Wires. Kataria Industries Limited will acquire the Wire Division for a total consideration of Rs 30.6 crore, compared to the Net Asset Value (Net Worth) of Rs 30.27 crore, as per the unaudited financials dated October 21, 2024.
Mr. Arun Kataria, MD, Kataria Industries Limited said, “We are excited about the acquisition of Ratlam Wires' Wire Division, which is expected to enhance our Turnover and margins through the combined synergies of both businesses. This move is perfectly aligned with our long-term growth strategy and will enable us to better serve a wider range of industries.”
The synergy between the two companies will enable Kataria to cater to a broader spectrum of industries, includingAutomobile Industry and Railways. The Turnover of the Wire Division of Ratlam Wires during 01.04.24 to 21.10.24 was Rs 89.384 crore, Rs 151.987 crore in FY 2023-24 and Rs 136.418 crore in FY 2022-23. The acquisition is expected to generate an EBITDA margin of approximately 3.5% to 4.5%, enhancing both the topline and bottomline of Kataria Industries Limited.
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