As per the decided merger, Kirloskar Ferrous Industries will acquire all the assets and property of Indian Seamless Metal Tubes.
Pune-based Kirloskar Ferrous Industries Ltd. (KFIL), a leading pig iron and castings maker, has announced the plan of the merger to amalgamate and consolidate the business operations of Indian Seamless Metal Tubes Ltd. (ISMT). As per a news daily, the decided date for the said scheme is April 1, 2023. Thus, all the assets and property owned and managed by ISMT would be taken over by KFIL. Moreover, all the liabilities of the ISMT immediately before the merger appointed date shall stand transferred to KFIL.
Speaking about the merger, Mr. Atul Kirloskar, Chairman, KFIL, said, “We acquired ISMT in March 2022, to enter into the seamless tubes market. For KFIL, this was a step towards forward integration and product diversification. On the other hand, for ISMT, this was a step towards backward integration.”
Mr. Kirloskar further added that the acquisition has brought an opportunity to integrate iron ore to seamless tubes. In this direction, the Company is proposing to integrate the entire business under the umbrella of Kirloskar Ferrous Industries Ltd. to reap the synergies between the two businesses.
In the words of Mr. R.V. Gumaste, Managing Director, KFIL, “As we complete two-quarters of the full operations of ISMT post-acquisition, our team has ensured smooth operations and is confident to move ahead in line with our expectations. We believe, the merger will result in a financially robust entity with a broader customer base covering the entire value chain. This will also help us improve operational efficiencies through standardization and simplification of business processes.”
Established in 1991, KFIL is one of India’s largest castings and pig iron manufacturers. The company caters to various industry sectors, such as tractors, automobiles, and diesel engines. SMT is the largest integrated specialized seamless tube producer in India. Being one of the most diversified manufacturers of specialized seamless tubes in the world, ISMT produces tubes in the range of 6-273 mm diameter.