Hot Charge TMT Steel Plant
Confidential Information Summary: an operating melt-to-bar TMT reinforcement plant offered for sale
Executive summary
This summary introduces an operating TMT reinforcement-bar plant that melts, casts and rolls on a single site. Its flagship product is a branded TMT bar, supported by plain rounds, billets and cut-and-bend work. The sellers have communicated an indicative ask.
Turnover grew 24.8%, from ₹339 Cr in 2025 to ₹423 Cr in March 2026.
The plant runs four 10 MT induction furnaces, two single-strand casters and a three-stage rolling line, supported by 20,000 kVA of furnace transformer capacity.
The ask of ₹101 Cr equals 23.9% of March 2026 turnover. Structure and perimeter follow after NDA (section 08).
Basis of preparation
All figures are management-stated and have not been audited or verified by the adviser. Turnover is the only financial measure supplied, and the period definitions, tax basis and audit status of the two turnover figures will be confirmed in the data room.
No profit, margin, depreciation, tax, debt or cash-flow figures are included. Growth and ratios in this document are the adviser's arithmetic on the two turnover figures.
Investment highlights
The case rests on installed, operating assets rather than a plan. Each highlight below is drawn from the information supplied by the sellers.
Turnover up by a quarter in one period
Turnover rose from ₹339 Cr in 2025 to ₹423 Cr in March 2026, an increase of ₹84 Cr on a plant established in 2023.
+24.8% on 2025Melt-to-bar route on one site
Induction melting, twin-caster billet production, a three-stage rolling line, double quenching and a finishing shed sit within the same 5-acre premises.
4 × 10 MT furnacesPower systems installed for the load
An indoor HT substation, HT capacitors with automatic power-factor control and air-conditioned panel rooms serve the furnaces. Management states power factor is held continuously at 0.997.
20,000 kVA furnace transformersMaterial handling built in
Eleven overhead cranes, four electromagnets and six raw-material bunkers move material from yard to finished-goods shed without third-party handling.
1,800 MT bunker capacityLand and site infrastructure with room to extend
The site covers 5 acres, with a 100-tonne weighbridge, a fully furnished office of about 6,000 sq ft, a canteen and a fully paved plant area. Further land is available for acquisition.
5 acres + further land availableBusiness overview
The company manufactures steel reinforcement bars and semi-finished steel. It melts and casts its own billets and rolls them into finished bars on the same site. The plant was established in 2023.
TMT bars
The flagship product, sold under the company's own brand. Specialty grades are listed by management; specifications will be provided in the data room.
MS round
Plain mild-steel rounds, sold under the same brand as the TMT range.
MS billets
Cast billets sold as a product line, giving a route for output that is not rolled in-house.
Cut & bend
Custom fabrication of cut-and-bent reinforcement, a value-added service on top of the bar range.
The split of turnover between these lines has not been supplied and will be provided in the data room. Pricing, input cost and working-capital cycle are listed in section 07 as not yet supplied.
Operations & capacity
The plant is laid out as one continuous flow from raw-material bunkers to the finished-goods shed. Melting, casting, rolling and finishing share the site, with the power systems installed alongside.
The table lists installed equipment by count and specification.
| Area | Installed | Total |
|---|---|---|
| Induction furnaces | 4 × 10 MT, with power optimiser and conveyor charging | 40 MT |
| Furnace transformers | 5 × 4,000 kVA | 20,000 kVA |
| Auxiliary transformers | 2 × 3,500 kVA | 7,000 kVA |
| Casters | 2 single-strand, automatic billet shearing | 2 strands |
| Roughing mill | 3 × 18 inch | 3 stands |
| Intermediate mill | 3 × 13 inch | 3 stands |
| Continuous mill | 1 × 13 inch + 6 × 10 inch, with continuous shear | 7 stands |
| Cooling bed | Twin channel, with double quenching | 72 m |
| Cranes | 2 × 20 MT double hoist; 1 × 10 MT double hoist; 2 × 10 MT single hoist; 1 × 5 MT billet loading; 5 × 10 MT finishing shed | 11 cranes |
| Raw-material bunkers | 6 × 300 MT | 1,800 MT |
| Electromagnets | 3 for raw and finished side; 1 for billet loading | 4 units |
Cited by management for the plant; dispatch records will be provided in the data room.
Share of rolling capacity management states is being achieved.
Five transformers of 4,000 kVA each serve four furnaces, so one transformer is available beyond the furnace count.
Capacity headroom
At the stated 95% rolling capacity, further volume needs added melting or rolling capacity rather than better utilisation. A buyer should size that capex before pricing growth.
The sellers state that further land is available for acquisition beside the existing 5 acres, which is the natural location for an extension.
Quality, utilities & inputs
Testing, maintenance and utilities are held in-house on the same site. The information supplied covers equipment and infrastructure, not certifications or supply contracts.
Laboratory
Fitted with a spectrometer and a universal testing machine, among other equipment.
Maintenance workshop
An in-house workshop with the machines required for maintenance.
Finishing
Automatic bundling and roll-branding machines; finished goods held in a crane-served shed.
The panel lists the power and site utilities installed.
Raw-material storage
Six bunkers of 300 MT each, 1,800 MT in total, in a separate shed with conveyor charging to the furnaces.
Certifications and supply terms
Product certifications, supplier terms and input mix were not supplied; they will be listed in the data room.
Power backup
The 380 kVA generator is 1.9% of the 20,000 kVA installed furnace transformer capacity. Melting therefore depends on grid supply, and outage history and power contract terms are a first diligence request.
Customer mix & concentration
No customer-level data has been supplied for this summary. Billings by account, concentration ratios, segment split and channel mix will be provided in the data room.
Concentration cannot yet be assessed
Dependence on any single account, the share of repeat buyers and the geographic spread are unknown at this stage. A masked top-twenty customer table, reconciled to turnover, will be released once customer data is received.
Financial snapshot & earnings quality
Only turnover has been disclosed. Everything in this section is built from those two figures.
Turnover rose by ₹84 Cr between the two periods supplied.
| ₹ Cr | 2025 | March 2026 | Change |
|---|---|---|---|
| Turnover | 339 | 423 | +84 (+24.8%) |
| Indicative ask as % of turnover | – | 23.9% | – |
The panel names each earnings item that a buyer will ask for and has not yet been supplied.
Weakest metric: profitability is undisclosed
With no margin or cash-flow data, a buyer cannot yet test whether ₹423 Cr of turnover converts into earnings. The ask of ₹101 Cr can only be benchmarked against turnover until that data arrives.
The latest figure relates to March 2026. A half-year has closed since (September 2026), and interim figures will be requested.
M&A proposition
The sellers are offering an operating melt-to-bar plant with its brand identity and site infrastructure. The sellers have communicated an indicative ask. The legal structure is not yet set.
₹339 Cr to ₹423 Cr between the two periods supplied.
Further land is available for acquisition beside the plant.
₹101 Cr against ₹423 Cr of March 2026 turnover.
Long-products steel producers
Operators seeking melting, casting and rolling capacity they have not had to build.
Construction-linked groups
Groups that consume reinforcement steel and want to secure supply of their own.
Financial buyers
Investors prepared to underwrite an operating plant once margin and cash-flow data are tested.
The panel sets out the parameters communicated so far.
Extend capacity
Add melting and rolling capacity on the further land, since rolling is stated to be at 95%.
Grow value-added lines
Expand cut-and-bend work, which already sits on top of the bar range.
Power efficiency
Review power cost against the installed 20,000 kVA of furnace capacity once consumption data is available.
Perimeter
Whether the transaction covers assets, the business as a going concern or equity, and how land, brand and working capital are treated, will be set out after NDA.
Risks & mitigants
These are the points a buyer is most likely to raise, stated as they stand today. Several arise from data not yet supplied rather than from a known weakness.
Process & next steps
Interested parties move through four steps, each opened only to those who have completed the one before. The adviser controls access to all information.
Important notice. This Confidential Information Summary has been prepared by CA Dhiraj Ostwal & Co. solely to help a recipient decide whether to proceed to a non-disclosure agreement. It is provided on a confidential basis and may not be copied, circulated or disclosed to any other person.
The information was supplied by the sellers and has not been audited, independently verified or validated by the adviser. No representation or warranty, express or implied, is given as to its accuracy or completeness, and the adviser accepts no liability for any loss arising from its use. Figures stated by management, including capacity and utilisation, are management's own statements.
This document is not an offer, an invitation or a recommendation to buy or sell any asset or security. Each recipient must make its own assessment and take its own professional advice. The sellers and the adviser may amend the process or withdraw from it at any time without notice or liability.