New Delhi, Feb 26 (UNI) Secondary steel maker Bhuwalka Steel Industries Ltd today said its board has approved acquisition of Benaka Sponge Iron Pvt Ltd for Rs 990 lakhs.
''With this takeover, the company will have access to sponge iron to the tune of 60,000 million tonnes (MT) per annum immediately and also this site will be available for future growth,'' company said in a statement.
Benaka is strategically located in Belagal Village, Bellary, which is close to iron ore mining belt.
It has at present two kilns of coal-based sponge iron plant of the capacity of 100 MT per day each.
A green field project of similar size will cost about Rs 30 crore and gestation period would have been minimum 18-24 months.
''Due to close proximity of this unit to the iron ore mines, there will be great logistic advantages in terms of time and value,'' it added.
Benaka, with a networth of Rs 1001 Lacs, has posted a net profit of Rs 202 Lakh for the FY07.
UNI MP SR HS1640