Specialty steel bars (alloy and micro-alloy) producer Arjas Steel recently went thru a significant change in its ownership which is seeing the company undertake some bold steps.
In Nov 2024, The Sandur Manganese and Iron Ores Limited (SMIORE) acquired 100% of Arjas Steel from the shareholders ADV Partners for an estimated Rs 3000 crores.
A 70-year-old listed company SMIORE has built its reputation as a quality Iron ore/Manganese ore supplier to steel makers.
SMIORE also manufactures coking coal and Ferro Alloys as required by the steel Industry. ‘Thus, for both companies, this transaction is seen to be a synergistic one.
This acquisition will ensure the key raw materials to Arjas Steel and improve the efficiency on quality and service to customers whilst for SMIORE it completes the entire value chain from iron ore to finished steel products, said the company in a release to Vizag Industrial Scan.
The combined family of SMIORE and ARJAS will have approximately 7000+ workforce which will serve customers, stakeholders and build prosperity for the communities that they work in.
And to lead this change Arjas Steel recently announced the appointment of Mr. Pasupuleti Anand as Chief Executive Officer. Mr Anand brings over 31 years of distinguished service at Tata Steel Ltd, with extensive leadership experience in strategic, commercial, new business development, and business excellence domains.
Similarly, Mr Sridhar Krishnamoorthy, after having served 11 years at the helm as Managing Director, has now become an Advisor to the Chairman of Arjas Steel Mr. Bahirji A Ghorpade.
Arjas Steel has been a leading producer and supplies for several critical applications in the automotive, energy and railways segments and is poised to get close to a production of 500,000 tons per year (from the 4 lakh tons currently) of Special Bar Quality Products, driving performance together with sustainability and corporate social responsibilities.
During last 3 years Arjas Steel has invested over INR 500 crores in new projects that will bring cost savings and significant efficiencies in its production process.
These include a state of the art reducing and sizing block from KOCKS Germany has been installed in the Rolling Mill that will ensure quicker turnaround of products for customers and improved dimensional quality.
A new Garret coiler will start producing coils which will be a new product for the company. The Blast Furnace was completely rebuilt as well as the 3 stoves upgraded.
In Dec 2024, a new 20MWp Solar Power plant was also commissioned. This will help Arjas Steel improve its energy self-sufficiency and at the same time, the energy input will be carbon-free. All these projects will help reduce the carbon footprint.
The company operates 2 units in India (one on Tadipatri AP) & one in Punjab, wherein it serves customers across India as well as some exports to some destinations in Europe and Asia.
Increasingly Arjas Steel’s focus will be to produce further value-added products, such heat-treated bars, and bright bars.
Arjas Steel has been a strong contributor to the economic development of Anantapur and the State of AP. The teams at SMIORE and Arjas Steel are fully geared up to meet all current and future customer requirements.
