Dubai-based Cronimet Mercon Invest Ltd has completed the acquisition of GMR Ferro Alloys and Industries Ltd, part of the GMR Group which is into diversified infrastructure sectors. Post this development, the company has been renamed as Cronimet Alloys India Ltd.
Cronimet had acquired the entire promoter holding of 50.48 in the company, held by GMR Holdings Pvt Ltd and GMR Airports Holdings Pvt Ltd for Rs 22.55 crore in May 2008. It had recently acquired an additional 20% stake in the company through an open offer to the shareholders at the price of Rs 26.04 per share. Post this subscription, Cronimet’s holding in GMR Ferro Alloys is increased to 70.48%.
The ferro alloys company, engaged in the manufacture of high carbon ferro-chrome for use in the stainless steel industry, was created by GMR Industries Ltd by spinning off its metallurgical division in April 2006. It has a high carbon ferro-chrome manufacturing facility in Srikakulam district of Andhra Pradesh., and has an installed capacity of producing 25,000 MT ferro chrome in two grades, high silicon and low silicon. Consequent to the acquisition, Cronimet has shifted the headquarters of GMR Ferro Alloys from Hyderabad to Tekkali in Srikakulam district.
Reports suggest the company has also made some changes at the top level and brought in two representatives on board from Cronimet Mercon. It has appointed Rajiv Saxena as the chairman and Prashant Boorugu as the managing director of the company. Net sales of the company during financial year 2008-09 was Rs 101.01 crore, while it posted a net loss of Rs 3.15 crore in that fiscal.