Sicagen India Ltd, a Chennai-based construction and industrial products company, has agreed to acquire Bengaluru-based Danish Steel Cluster Pvt. Ltd to expand its manufacturing abilities.
The acquisition will help Sicagen capitalise on opportunities in steel and metal fabrication business, the company said in a stock-exchange filing.
Sicagen, part of the MA Chidambaram group, is engaged in trading and distribution of building materials in India and abroad.
The acquisition is subject to fulfilment of certain conditions by the owners of Danish Steel, Sicagen said, without elaborating.
“We consistently look for opportunities to expand our key areas of business and build our expertise. The long-term investment we have made will enable us to strengthen our manufacturing capabilities and optimise our position,” said Sunil Deshmukh, a director on Sicagen’s board.
Ashwin Muthiah, chairman of Sicagen, said the company has a network of 32 branches in India and intends to expand.
Sicagen has turnover of Rs 600 crore and has 400 employees. The company trades building materials including AAS/ GI pipes, precision tubes, seamless tubes, rectangular, hollow sections, TMT steel bars, and PVC pipes.
Danish Steel was set up in 2005 and focusses on precision fabrication of stainless steel, carbon steel, mild steel and aluminium. It caters to food processing, pharmaceutical, wind energy, transportation and retail sectors.
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