Bharat Forge on Monday announced that its step-down subsidiary, J S Auto Cast Foundry India (JS Auto) has entered into a business transfer agreement with Indo Shell Mould (ISML) for acquiring their SEZ Unit in SIPCOT, Erode.
The SEZ Unit with a capacity of 42,000 million tonnes per annum (MTPA), supplies fully machined critical castings to the customers in the automotive industry and will operate as the third manufacturing unit of JS Auto. This takes the capacity at JS Auto to 1,42,000 MTPA, the company said.
This acquisition strengthens JS Auto's presence in the castings sector, expands the product offering & client base and enhances its footprint in the Indian manufacturing landscape. The acquisition will be EPS accretive from the first year itself, Bharat Forge stated in the press relese.
The closing of the transaction is subject to customary conditions and regulatory approvals, said the company.
Bharat Forge manufactures an extensive array of critical and safety components for several sectors including automobiles (across commercial & passenger vehicle), oil & gas, aerospace, locomotives, marine, energy (across renewable and non-renewable sources), construction, mining and general engineering.
The company's standalone net profit declined 14% to Rs 268.12 crore despite of 16.02% to Rs 1,863.94 crore in Q2 FY23 over Q2 FY22.
Shares of Bharat Forge rose 0.98% to Rs 888.15 on the BSE.
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