Transformers and Rectifiers (India) (TARIL) said that has decided to make a strategic investment in Posco Poggenamp Electrical Steel by acquiring a controlling stake.
Posco Poggenamp Electrical Steel manufactures of CRGO laminations for transformer & reactors up to 765 kV class / 500 MVA and capable to process up to 1200 kV class/1000 MVA rating. Its installed capacity of 24000 MT/ per annum. One of the largest and finest facility of India with all approvals in place.
CRGO electrical steel is a critical raw material for any transformer and reactor, comprising about 33% to 35% of their raw material cost & is almost 50% of MVA in terms of capacity.
Reliable performance of transformer or reactor hinges on stringent manufacturing standards and precise process control when processing CRGO steel of the desired specifications.
By establishing a dedicated CRGO processing plant, TARIL ensures tighter control over the quality and consistency of electrical steel, the most important part of entire supply chain as well as more efficient management of this vital raw material for any product upto 1200kV and 500 MVA.
This strategic acquisition is designed to optimize supply chain management, improve operational efficiency, and expand TARILs market presence, particularly in the growing energy and infrastructure sectors.
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Additionally, TARIL has signed a long-term supply contract with the electrical steel mills to guarantee a steady supply of mother coils for long term, further securing the reliability of its supply chain.
With this acquisition, TARIL will be fully integrated for CRGO Processing, enabling it to better meet both internal needs and external market demand.
"This acquisition is a major milestone for TARIL towards the 100% backward integrated company in time to come, the company said in a statement.
Transformers & Rectifiers (India) produces transformers for both domestic and international markets.
The companys consolidated net profit surged to Rs 45.25 crore in Q2 FY25 as compared with Rs 1.61 crore posted in Q2 FY24. Revenue from operations jumped 79.55% to Rs 461.54 crore in Q2 FY25 as against Rs 257.06 crore posted in Q2 FY24.
The scrip was locked in 5% lower circuit at Rs 887 on the BSE today.
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