Vesuvius India Limited has approved the sale of its manufacturing facility in Mehsana, Gujarat, to Foseco India Limited (FIL) for a lump-sum consideration of ₹43.25 crore. The transaction, structured as a slump sale, is expected to be completed by December 31, 2026. This divestment is part of Vesuvius India’s strategy to streamline operations by divesting non-core assets, while FIL intends to integrate the facility into its non-ferrous foundry strategy.
Asset Divestment Approved
The Board of Directors of Vesuvius India Limited has given its approval for the execution of a business transfer agreement to sell its manufacturing facility located at 212/B, G.I.D.C. Estate, Mehsana, Gujarat. This facility is primarily engaged in the manufacture of crucibles, stoppers, and sleeves for the non-ferrous industrial sector. The sale is structured as a slump sale, and the transaction is anticipated to conclude by December 31, 2026.
Financial Consideration and Buyer Details
The agreed lump-sum consideration for the Mehsana Facility is INR 43,25,00,000 (Indian Rupees Forty-Three Crore Twenty-Five Lakhs), subject to adjustments as outlined in the business transfer agreement. The buyer, Foseco India Limited (FIL), is a public listed company and a fellow subsidiary within the Vesuvius group. FIL is primarily involved in manufacturing and trading metallurgical products and services.
Rationale and Transaction Details
Vesuvius India Limited stated that the manufacturing business at the Mehsana Facility and its associated products are non-core to its current business operations. Conversely, the crucibles business is identified as a key element of FIL’s non-ferrous foundry strategy. Following FIL’s recent acquisition of Foseco Crucible (India) Limited, the company expressed interest in acquiring the Mehsana Facility to expand its manufacturing footprint. The transaction has been approved by the Audit Committee and is being conducted on an arm’s length basis, supported by a valuation report from BDO Valuation Advisory LLP.
No Shareholding Impact
The company has confirmed that there will be no change in the shareholding pattern of Vesuvius India Limited pursuant to this proposed transaction.
Source: BSE
