The company announced that it will acquire refractory business of Hi-Tech Chemicals via a slump sale on a going concern basis for a cash consideration of Rs 621 crore.
Incorporated in 1986, Hi-Tech is engaged in the refractory business wherein it manufactures and supplies products like isostatically pressed ceramics, slide-gate plates, nozzle opening compound or tundish monolithics largely for the steel industry. It has a major presense in India and a minor presence in 6 countries in Europe, Africa & Asia. Its turnover for the FY 2021-2022 is Rs 270.2 crore and the profit before tax for the FY 2021-2022 is Rs 70.70 crore.Rhi Magnesita India (RHIM) said that the acquisition will strengthen and enlarge offering to enhance its position in the domestic & international flow-control refractory business. The acquisition requires an approval from the Jharkhand Industrial Area Development Authority.
RHIM is the leading supplier of high-grade refractory products, systems and solutions which are indispensable for industrial high-temperature processes exceeding 1,200C in a wide range of industries, including steel, cement, non-ferrous metals and glass.
On a consolidated basis, net profit of RHIM rose 64.77% to Rs 82.35 crore on 40.25% rise in net sales to Rs 602.04 crore in Q1 June 2022 over Q1 June 2021.
Shares of RHIM surged 7.26% to Rs 719.05 on Tuesday, 18 October 2022.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
