Proposed acquisition of Chrome Mining Complex
Vishnu Chemicals has signed a definitive agreement to acquire a Chrome Mining Complex in South Africa, comprising of chrome mine along with Processing, Mining and Infrastructure assets for a total consideration of approx Rs.84 cr. The acquisition is expected to be completed within 12 months, subject to closing conditions and regulatory approvals.
Once acquisition is completed and mine & processing plant are restored, this is expected to provide benefit in terms of backward integration and stable supply of chrome ore raw material.
Vishnu has been gradually expanding its existing manufacturing capacities and also expanding capabilities through both forward and backward integration, via organic and inorganic routes. This is second inorganic initiative in the current financial year. While the hunger to grow and desire to make the business more robust is visible; delivery of results through these initiatives is to be seen, which is very critical from long term perspective.
Disc: Invested. I am not SEBI registered Advisor/Analyst. My view may be biased. I am not suggesting any investment action. The information provided above is for education purpose only.
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