Spain's Tubacex acquires 68% stake in Prakash Steelage unit

Spain-headquartered Tubacex, a company specialising in the manufacture of stainless steel tubular solutions, has entered into an agreement to acquire a 68-per cent stake in Prakash Steelage's stainless steel tube division for Rs254 crore.

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.

Prakash Steelage is a manufacturer of stainless steel tubes and pipes in India with an installed capacity of 20,500 MTPA. The seamless stainless tube division has a turnover of Rs175 crore.

"The acquisition of a majority stake in the seamless stainless steel division of Prakash Steelage is a step towards strengthening our presence in Asia,'' said Jesús Esmorís, CEO of Tubacex, in a statement.

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).

''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,'' said Shri Prakash Kanugo, chairman and managing director of Prakash Steelage.

''With this joint venture, Tubacex Prakash will aim to be a leader in the stainless steel tubes and pipes business in India,'' Kanugo added.