Electrotherm (India) has executed binding agreements pursuant to which Saint-Gobain Produits Pour La Construction SAS, France (Saint Gobain) will acquire the ductile iron pipes (DI Pipes) business and 100% stake in a subsidiary of the company for Rs 950 crore plus the value of working capital at closing. The transaction will be subject to the terms and conditions as set out in the binding agreements entered into by the parties.
This transaction will enable Electrotherm (India) to focus on its core businesses of engineering and steel and also to reduce debt. KPMG Corporate Finance was the exclusive financial advisor to Electrotherm (India).
Electrotherm (India) established itself as a market leader in the induction of melting furnaces for the steel manufacturing in India and has further diversified into the steel manufacturing and electric vehicles business.