Operating 600 TPD TMT bar plant, offered as a fixed-asset sale
A rolling mill on 18 freehold acres in Karnataka, India, with 10 acres undeveloped.
The opportunity
The owners of an operating TMT reinforcement-bar plant in Karnataka are offering its entire fixed-asset base for sale. A buyer takes a running rolling line, its utilities, and a large freehold site with undeveloped land. The route suits a buyer who prefers an operating plant to a greenfield build.
Basis of preparation
Sales are as stated by the owners for FY2022-23 to FY2024-25 and have not been verified by the adviser. Audited accounts are released in the data room after an NDA.
FY2024-25 ended on 31 March 2025; FY2025-26 has since closed and is not shown. This teaser gives no profit, margin or cash-flow figures.
Investment highlights
Capacity, land and permits are the three assets a new entrant would otherwise spend years assembling.
Installed capacity of 180,000 TPA
The rolling line is rated at 600 TPD on a 25-day month. It makes all types and sizes of TMT bars for buildings, bridges, roads and other structures.
15,000 TPMSales grew in both years shown
Owner-stated sales rose in FY2023-24 and again in FY2024-25. Section 05 gives the year-by-year figures.
+61.8% over two yearsFreehold land with room to expand
Ten of the 18 freehold acres are vacant, and the owners say adjoining private land is available for expansion. Section 04 has the schedule.
10 acres vacantIron-ore linkage
The owners state a linkage covering their full iron-ore requirement, from mines in eastern India.
100% linked (owner-stated)Permits and a clean file
Pollution-board permissions and all statutory clearances are stated as in place. The owners report no litigation and run ERP-based accounts and MIS.
No litigation (owner-stated)Plant & machinery
The line runs from reheating through rolling to finishing and bundling, backed by on-site power and water. The owners report recent equipment upgrades.
Reheating
- Reheating furnace
- Pusher and hydraulic system
- Ejector system
- 3-tonne coal pulveriser
- Conveyor system
Rolling
- 16-inch single-stand roughing mill
- 14 DC stands of various sizes
- Hot shear, 50 HP motor
- Flying shear, crop and cobble shear
Finishing
- Repeater with pinch roll
- Looper with loop scanner
- Quenching, water and cutting systems
- Tail breaker and bundling machine
Power
- Two 2,500 kW transformers, 33 kV line
- 1,400 kW rooftop solar, under warranty
- Control room and MCC room
- Power back-up systems
Water & environment
- Borewells and water tanks
- Rain-harvesting pond with storage
- Chimney and pollution-control system
- Pollution-control equipment
Site services
- Weighbridges and compressor rooms
- Stores and spares, incl. roughing couplings
- CCTV and security barracks
- Admin building, guest house, canteen, labour rooms, staff quarters
Site & buildings
The plant stands on freehold industrial land that is partly undeveloped, close to a large metropolitan market.
Share of the 18 acres
The four sheds total 10,098 m² of floor area, and the first two carry four 5-tonne cranes between them.
| Shed | W × L × H (m) | Floor area (m²) | Cranes |
|---|---|---|---|
| Shed 1 | 22 × 156 × 6 | 3,432 | 2 × 5 t |
| Shed 2 | 22 × 156 × 6 | 3,432 | 2 × 5 t |
| Shed 3 | 30 × 63 × 6 | 1,890 | — |
| Shed 4 | 16 × 84 × 6 | 1,344 | — |
| Total | 10,098 | 4 cranes |
Sales
Sales grew in every year shown, and the latest year is the highest.
The table gives the same sales with the change on the prior year.
| Financial year | Sales (₹ Cr) | Change on prior year |
|---|---|---|
| FY2022-23 | 110 | — |
| FY2023-24 | 143 | +30.0% |
| FY2024-25 | 178 | +24.5% |
Sales grew 30.0% in FY2023-24 and 24.5% in FY2024-25, a compound rate of 27.2% a year over the two years, or 61.8% in total.
Proposition & terms
The owners are offering the assets of the company rather than a shareholding. The asking price covers fixed assets only.
₹120 Cr divided by 180,000 TPA. The adviser derived this figure; the owners did not state it.
Steel producers adding capacity
A bar or rod producer adds 180,000 TPA of rated rolling capacity without a build programme.
New entrants to long products
An entrant takes an operating line, with permits and clearances the owners state are in place.
Industrial-land investors
Ten vacant freehold acres sit beside an operating plant, with adjoining land the owners say can be added.
Process & next steps
Four steps from interest to offer
Express interest
Write to the adviser, quoting Project Ironcreast.
Sign the NDA
The NDA releases the company's identity and the full information summary.
Review the data
Documents open in the data room, listed below.
Visit and offer
Site visit and management discussion, then offers.
Released after the NDA
Disclaimer. This teaser is issued by CA Dhiraj Ostwal & Co. on behalf of the owners, for discussion only. It is not an offer, an invitation or a prospectus. Figures are the owners' own, have not been verified by the adviser and may change. No representation or warranty is given on accuracy or completeness, and recipients must rely on their own diligence. Recipients must keep its contents confidential and must not try to identify the company or contact its staff, customers or suppliers.