Vanagaram Refractories Works Industries Ltd (VRW) sold for Rs.40.79 crores

Sical Logistics Ltd has announced that the Company has sold Vanagaram Refractories Works Industries Ltd (VRW) to a key enterpreneur in the real estate industry in Tamil Nadu. The sale was completed for a consideration of Rs 40.79 crores for an area of 8.68 acres.

VRW was engaged in the business of manufacturing refractory bricks. These bricks are used as lining for furnaces / kilns / ovens in cement, steel and other process industries. Its manufacturing unit was located at Vanagaram village, Ambattur Taluk and Thiruvallur district.

The sale progressed in three phases - the first phase was the settlement with labor. The second sale involved sale of plant and machinery as scrap for about 2 crores and the third phase involved the sale of the land.

"This is a conscious decision to move out of the non-core businesses of Sical. Going ahead we want to direct our funds and efforts towards the logistics sector where our Core competencies lie. Sical is focused on becoming the country's largest integrated multimodal logistics player." said Mr. Ashwin Muthiah, Chairman, of the Company.

VRW had been merged with MAC Industrial Products Ltd in 1994 which was later merged with the Company in ‘96. The operations of this division were both capital and labor intensive. The management took the decision to hive off this Unit since it was felt that the investment could be directed to its logistics business. As part of its long term strategy, the Company has been in the process of demerging its non logistics businesses to focus on its core business of logistics.

Source : Equity Bulls

Keywords