KD Green Industries announces proposed merger with KD Iron & Steel

Guwahati-based KD Green Industries Limited (formerly known as Manbro Industries Limited) has announced that its Board of Directors has granted in-principle approval for a merger with KD Iron & Steel Private Limited. The transaction remains subject to customary due diligence, regulatory clearances, statutory approvals, and other necessary conditions.

The proposed consolidation is designed to unite complementary strengths under one banner, forging a highly diversified industrial conglomerate. The combined entity will focus heavily on green manufacturing of value-added steel products, Autoclaved Aerated Concrete (AAC) blocks, and dedicated infrastructure steel items tailored for the power, railways, telecom, and allied sectors.

Unlocking Regional Manufacturing Excellence

KD Iron & Steel Private Limited operates as the flagship entity of the KD Group and has established itself as a dominant manufacturer of branded steel in North-East India under the XTECH brand.

The company brings an advanced, sustainable technological framework to the merger:

Green Steel Processes: By using post-consumer and industrial recycled metal scrap as its primary raw material, the company eliminates the need for virgin iron ore. This method drastically reduces the carbon footprint associated with steel production.

Cleaner Melting & Energy: Utilizing an electric induction furnace paired with a ladle refining furnace ensures significantly fewer emissions per tonne compared to traditional blast furnace operations. Production is also increasingly backed by renewable energy goals.

Technical Benchmarks: The production facility incorporates computerized rolling mills, a Thermex quenching system, and German technology. Notably, its TMT bars are Seismic Zone-V certified to withstand the highest levels of earthquake activity, featuring a twin double ribbed structure for enhanced concrete bonding.

Market Firsts: The company is the first in Assam to achieve direct rolling of TMT bars from molten steel billets and stands as the only regional manufacturer partnering with Tata Sponge for continuous technology upgradation.

Massive Expansion Roadmap and Financial Backing

Prior to the merger announcement, KD Iron & Steel laid out a major growth strategy supported by a ₹325 Crore project outlay. This capital expenditure program is geared toward massive capacity enhancements:

Furnace Capacity: Scaling up by 2.67 times from the current 90,000 MT annually to a future capacity of 1,80,000 MT annually.

Rolling Capacity: Expanding from the current 99,000 MT annually to a future threshold of 2,00,000 MT annually.

Energy Efficiency: Setting up a 25MW captive solar power plant to lower energy costs, enhance operating leverage, and insulate the bottom line from volatile power pricing.

This regional footprint is further strengthened by fiscal backing from local authorities. The company has secured an incentive package approved by the Government of Assam, aggregating approximately ₹600 Crore spread across the next 15 years, which will directly improve cash flows and sustain long-term operations.

Synergies and Future Outlook

KD Green Industries Limited, along with its subsidiaries, currently manufactures AAC blocks under the Green AAC Block brand, alongside pipes and poles under the XTech brand. It is also actively setting up an infrastructure-focused steel fabrication arm.

By pulling KD Iron & Steel's raw manufacturing capability into the listed corporate structure of KD Green Industries, the consolidated entity will establish a single flagship identity for the KD Group. Beyond consolidating operations, the merger aims to drive significant operational efficiencies, streamline the group's debt-free internal accrual framework, expand the overall manufacturing scale, and unlock long-term value for public shareholders.

To anchor its widening market presence and accelerate consumer visibility across North-East India, the XTECH brand has recently appointed Bollywood actor Sanjay Dutt and premier Assamese actress Nishita Goswami as brand ambassadors. This marketing push is anticipated to steadily fortify dealer confidence and consumer recall as the corporate transition advances.

Source : Equity Bulls

Keywords

KDGreenIndustries InPrincipleApproval KDIronandSteel