Ratlam: 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 wire sector. Ratlam Wires manufactures a wide range of steel wire products, 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, including Automobile 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.
About Kataria Industries Limited:
Kataria Industries Limited is engaged in the manufacturing and supply of Low Relaxation Pre-stressed Concrete (LRPC) Strands, Steel Wires, Post-tensioning (PT) Anchorage Systems, HDPE Single Wall Corrugated (SWC) Sheathing Ducts, Couplers, and Aluminium Conductors. Our products are utilized in a variety of sectors, including infrastructure, roads, bridges, flyovers, metros, railways, high-rise buildings, atomic reactors, LNG tanks, and power transmission & distribution lines.
About the Wire Division of Ratlam Wires Pvt. Ltd.:
Established in 1986, Ratlam Wires Pvt. Ltd. is a renowned manufacturer of high-quality steel wires, with an annual production capacity of 30,000 MT. Operating from a 1,98,848 sq. ft. facility in the Industrial Area of Ratlam, the division is equipped with advanced machinery, including Wire Drawing Machines, Stranding Machines, Straight Line Machine, Heat Treatment Furnace, Testing Machines & Material Handling Equipment’s and Laboratory Equipment.
The facility is powered by a 33 KVA (HT) and 11 KVA (LT) power connection, along with an 800 KVA wind energy converter for captive consumption. Supported by over 170 skilled employees, Ratlam Wires has been a significant player in the steel wire manufacturing industry, serving various sectors with precision and quality.
