The Sandur Manganese & Iron Ores Limited (SANDUMA) announced plans to acquire an additional 20% stake in Arjas Steel Private Limited (ASPL), aiming for full control of the specialty steel manufacturer. The acquisition, approved by the board at SANDUMA’s 375th meeting on November 4, 2024, will raise SANDUMA’s stake in ASPL to 100%.
The transaction, estimated at an enterprise value of ₹3,000 crore, is expected to close by November 15, 2024, with final equity adjustments upon closing. An amendment to the original Share Purchase Agreement from April 25, 2024, allows SANDUMA to secure up to 99.12% of ASPL’s equity capital.
Founded in 1993, ASPL ranks among India’s top five specialty steel producers, primarily supplying the automotive sector, and posted a consolidated turnover of ₹2,608 crore in FY 2023-24. The acquisition also includes Arjas Modern Steel Private Limited, ASPL’s wholly owned subsidiary, which runs an integrated electric arc steel plant in Mandi Gobindgarh, Punjab.
This acquisition aligns with SANDUMA’s strategy to strengthen its footprint in the steel sector, complementing its established businesses in manganese and iron ore mining, power generation, and ferroalloy production.
Sandur Manganese Limited, established in 1968 and headquartered in Bangalore, India, is a prominent player in the manganese ore mining and processing industry. Operating primarily in the mineral-rich regions of Karnataka, Sandur Manganese specializes in the extraction and beneficiation of high-grade manganese ore, which is a critical raw material for the steel manufacturing sector.
The company boasts a robust production capacity, supplying both domestic and international markets with ferro-manganese and silicomanganese products that enhance the quality and strength of steel. Committed to sustainable mining practices, Sandur Manganese employs advanced technologies to minimize environmental impact and ensure efficient resource utilization.
Additionally, the company invests in research and development to innovate its processing techniques and expand its product portfolio. With a strong emphasis on corporate social responsibility, Sandur Manganese actively engages in community development initiatives, promoting education, healthcare, and infrastructure improvements in the regions where it operates. Through strategic expansions and continuous operational excellence, Sandur Manganese Limited remains a key contributor to India’s mining industry and the broader steel production landscape.
