With the acquisition process completed, Gerdau Steel India Private Limited, with its major manufacturing plant in Anantapur, Andhra Pradesh has officially become Arjas Steel Private Limited.
The Brazil-headquartered Gerdau S A signed an agreement to sell its entire shareholding in its Spanish subsidiary Gerdau Hungria KFT Y CIA Sociedad Regular Colectiva.
This is inclusive of the 100 per cent of all operations and assets in India to Blue Coral Investments Holding Private Ltd and Mountain Peak Investment Holdings Ltd., owned and managed by ADV Partners and affiliated.
ADV Partners is an Asia focussed private equity firm with offices in Hong Kong, Singapore, Shanghai and Mumbai. The announcement was made to the markets on August 27, 2018.
Focus on core markets
The decision to divest the operations was driven by the desire to focus more on the core markets of North America and Latin America, Gerdau had said.
The change of name of the company follows the official completion of the transaction on Oct 31 2018, a press release stated.
Building roadmap
ADV Partners together with the existing management see big opportunities for the SBQ business in AP and in India and are working on a growth roadmap that will position Arjas Steel, as a center of excellence in the manufacture of SBQ steel.
The operations will continue to be run by the current management, it said.
Commenting on the development, Sridhar Krishnamoorthy, Managing Director of Arjas Steel said “We are excited by the vision that ADV Partners and we, the management, share for Arjas Steel. Our growth over the last few years, in providing special steel products for the automotive and energy sectors has been strong, thanks to our committed and engaged work force of 1600, strong technical processes and high levels of customer service”.