Kirloskar Ferrous Industries, a renowned manufacturer of castings and pig iron, has successfully acquired Oliver Engineering for Rs 110.55 crore, marking their second strategic acquisition. This move is in line with KFIL's expansion plans, enhancing their casting capacity. Last year, KFIL acquired a majority stake in Indian Seamless Metal Tubes (ISMT) for Rs 476.63 crore, solidifying its position in the market.

Oliver Engineering specialises in ferrous casting and machining, operating from its manufacturing hub in Sandharsi, Rajpura, Punjab. Currently, the company has a casting capacity of 28,000 MT per annum. Although the plant is non-operational, KFIL's Managing Director, R V Gumaste, stated that production is expected to commence within four to five months. The acquisition aligns seamlessly with KFIL's strategic objectives, complementing their existing product portfolio in the casting sector.

KFIL, serving industries such as tractors, automobiles, and diesel engines, operates facilities in Koppal and Hiriyur in Karnataka, as well as Solapur in Maharashtra. This acquisition provides KFIL with the opportunity to expand its geographical reach and meet the growing demands of customers in Northern India.

The National Company Law Tribunal (NCLT) approved the Oliver Engineering resolution plan on September 12. KFIL completed all necessary steps to acquire management and operational control of Oliver Engineering by September 29. The Committee of Creditors, consisting of Punjab National Bank (42.63% voting share), Bank of India (33.19%), and Bank of Maharashtra (24.18%), played a pivotal role in the process. The fair value of Oliver Engineering was determined to be Rs 153.79 crore, with a liquidation value of Rs 99.37 crore.

Source: The Financial Express