The board cleared the sale of the aluminium business operating under the “Elesar Focchi” brand to Hind Aluminium Industries Limited. The transaction, valued at INR 12.5 million (USD 0.13 million), is structured as a Material Related Party Transaction and will require regulatory compliance as well as shareholder approval. The company expects the deal to be completed by March 31, 2026.
According to the last audited financial statements as of March 31, 2025, the Elesar Focchi aluminium unit formed a substantial part of operations. The division generated income of INR 304.745 million (USD 3.3 million), accounting for 100 per cent of the company’s revenue, while its net worth stood at INR 97.26 million (USD 1 million), representing the full value of the business.
The sale is aimed at offloading a high-revenue division that had been incurring losses, helping the company address its operational challenges as the unit contributed all revenue but saw widening losses.
To move forward with the Business Transfer Agreement, the board has approved conducting a postal ballot to obtain shareholder consent. The step aligns with SEBI regulations governing Material Related Party Transactions and gives shareholders the authority to decide on the proposed disposal.
