Mumbai: Pump maker Kirloskar Brothers Ltd said on Wednesday it would take over the management of Kolhapur Steel Ltd to boost its steel cast production capacity.
Kirloskar Brothers said in a statement it would deposit Rs148.6 million in a no lien account to clear the debt of Kolhapur Steel, a Board of Industrial and Financial Reconstruction-listed firm.
Kolhapur Steel makes alloy steel castings used in sugar mills, steel, pumps, marine and earth moving industries. It has an annual revenue of about $500 million, a Kirloskar Brothers spokesman said.
Earlier, Kirloskar Brothers vice-president finance A.R. Sathe had said the company was looking at buying a steel cast firm to meet a shortfall in captive cast production.
Kirloskar Brothers buys almost half its steel cast requirement of 300 tonnes a month now, but the acquisition of Kolhapur Steel would allow it to produce its entire requirement of steel casts and sell to other customers.
Kirloskar shares were 1.9% up at Rs500 in a firm Mumbai market.