The Sandur Manganese & Iron Ores Limited (SMIORE) announced its decision to acquire 100% equity stake in Arjas Steel Private Limited (ASPL) in a move to expand its presence in the steel industry. The deal, with an enterprise value estimated at ₹3,000 crore, represents a strategic step toward becoming a national integrated player in specialty steel and value-added products.
ASPL, based in Tadipatri, is among India’s top five specialty steel manufacturers, focusing on alloy and micro-alloy steel, primarily for the automotive sector. The company reported a consolidated turnover of ₹2,608 crore for FY 2023-24 and operates with upstream and downstream facilities, providing a comprehensive manufacturing infrastructure. Through the acquisition, SMIORE aims to leverage synergies between its existing manganese and iron ore mining operations and ASPL’s advanced manufacturing capabilities.
The acquisition will also result in an indirect stake in ASPL’s subsidiary, Arjas Modern Steel Private Limited (AMSPL), which operates an electric arc integrated steel plant in Mandi Gobindgarh, Punjab. This move aligns with SMIORE’s growth strategy, integrating ASPL’s robust steel production to support its vision for forward integration and expansion into value-added steel products.
ASPL’s financials over recent years have been solid, with revenues of ₹2,876 crore in FY 2022-23 and ₹2,368 crore in FY 2021-22. The acquisition underscores SMIORE’s commitment to strengthening its steel portfolio and enhancing its competitive edge in the Indian market.