The world’s leading manufacturer of stainless steel tubular solutions has acquired a majority stake in the seamless stainless tube business of Prakash Steelage Limited, a leading stainless steel tubes & pipes Company in India
Ø TUBACEX, the world’s leading manufacturer of stainless steel tubular solutions, acquires a 68% stake of the seamless stainless steel division of Prakash Steelage Limited.
Ø Tubacex strengthens its position in the fastest growing markets in Asia
Ø Prakash has about 250 employees and a turnover of about 25 million Euros (Rs 175 crore)in this seamless stainless steel tube division
Mumbai, 13th February 2015. The Spanish company specialized in the manufacture of stainless steel tubular solutions, has reached an agreement with the Indian company, Prakash Steelage Limited, to acquire a 68% of its seamless stainless steel tube division, one of the leading manufacturers of stainless steel tubes and pipes in India.
The seamless stainless tube division employs about 250 people and has a turnover of about 25 million Euros (Rs 175 crore).
According to Jesús Esmorís, CEO of TUBACEX, "The acquisition of a majority stake in the seamless stainless steel division of Prakash Steelage is a step towards strengthening our presence in Asia”.
According to Managing Director of Asia Pacific, Ajay Sambrani, “This acquisition is a strategic medium and long term decision that will enable us to increase our presence in the market”.
“The joint venture will be mutually beneficial for Tubacex and Prakash Steelage and is expected to reinforce the growth of the stainless steel seamless tubes and pipes division” says Shri Prakash Kanugo, the Chairman and Managing Director of Prakash Steelage Limited. “With this Joint venture, Tubacex Prakash will aim to be a leader in the stainless steel tubes and pipes business in India”, he adds.
Following its recent acquisitions, Tubacex has become the leading manufacturer of seamless stainless steel tubes worldwide and has industrial platforms in Europe, America and Asia.
Tubacex will strengthen its position in the fastest growing markets, with particular emphasis on Asia, where the Group is increasing its commercial presence.
This acquisition fits perfectly into the company's Strategic Plan. Following a successful initial phase of strengthening its financial position and improving results (2013-2014), it is now entering into the next growth phase (2015 and 2016).
TUBACEX is a multinational group with its headquarters in Spain, dedicated to the manufacture of stainless steel and high-alloyed seamless tubes, a sector in which it is the leading manufacturer worldwide. It has production plants in Spain, Austria, China, Italy and the United States, services centers in Brazil, France and Houston, as well as subsidiaries and sales offices in fourteen counties.
The main sectors demanding the tubes manufactured by TUBACEX are the oil and gas, petrochemical and power generation industries, which account for over 90% of the Group's sales. The remaining 10% is aimed mainly at the mechanical and aerospace industry, among other sectors of activity.
With sales of around 700 million Euros, over 90% of the Group's business is in foreign markets.
It will have a workforce of over 2,500 people from twenty different nationalities and spread throughout fifteen countries. More than half of the Group's staff is working abroad.
TUBACEX has been listed on the Spanish Stock Market since 1970 and forms part of the "IBEX MEDIUM CAP" Index.
ABOUT PRAKASH STEELAGE
PRAKASH STEELAGE LIMITED (PSL or Company) is one of the leading manufacturers of stainless steel tubes and pipes in India with an installed capacity of 20,500 MTPA spread across 2 plants at Umbergaon, Gujarat and Silvassa, Dadra Nagar and Haveli.
Founded in the year 1991 by leading industrialist Shri Prakash C Kanugo, the Company has achieved Sales turnover of Rs1000 Crores.
The Company’s manufacturing quality and process are well recognized and are certified by ISO 9001 14001 18001. The Company has various prestigious certifications and vendor accreditations in its fold.
The Company made an initial public offering of equity shares in 2010 and is listed on leading India bourses NSE and BSE.”