Vesuvius India Limited announced the approval of a business transfer agreement for the slump sale of its Mehsana Facility in Gujarat to Foseco India Limited for a lump-sum consideration of ₹43,25,00,000. The facility, primarily engaged in manufacturing crucibles, stoppers, and sleeves, represents a non-core asset. The transaction is expected to be completed by December 31, 2026, and is being conducted on an arm’s length basis.
Vesuvius India Divests Mehsana Facility
Vesuvius India Limited has officially approved the sale of its manufacturing facility located in Mehsana, Gujarat, to its subsidiary, Foseco India Limited (FIL). This strategic move involves a slump sale of the undertaking, which is primarily engaged in the manufacture of crucibles, stoppers, and sleeves for the non-ferrous industrial sector. The transaction is valued at a lump-sum consideration of INR 43,25,00,000 (Indian Rupees Forty-Three Crore Twenty-Five Lakhs), subject to adjustments as outlined in the Business Transfer Agreement.
Rationale and Transaction Details
The Mehsana Facility is considered non-core to Vesuvius India’s primary business operations. The crucibles business, however, is a key component of FIL’s non-ferrous foundry strategy. Following FIL’s recent acquisition of Foseco Crucible (India) Limited, the expanded manufacturing footprint of FIL made the acquisition of the Mehsana Facility a strategic fit. The agreement was executed on August 13, 2026, with an anticipated completion date by December 31, 2026.
Financial and Related Party Aspects
For the financial year ended December 31, 2025, the Mehsana Facility contributed approximately INR 58.13 Crore (2.8%) to the company’s revenue and INR 34.74 Crore (2.09%) to its net worth. The transaction is classified as a related party transaction, given that both Vesuvius India and FIL are fellow subsidiaries under the ultimate holding company, Vesuvius plc, UK. The transaction has been approved by the Audit Committee, including independent directors, and is being carried out on an arm’s length basis, as supported by a valuation report from BDO Valuation Advisory LLP.
Shareholding Impact
There will be no change in the shareholding pattern of Vesuvius India Limited as a result of this proposed transaction.
Source: BSE
