Gerdau Steel India Private Limited has announced the change of the name of the company to Arjas Steel Private Limited. As announced to the market on Aug 27, 2018, by Brazil headquartered Gerdau S.A, Gerdau S.A. had signed an agreement to sell its entire shareholding in its Spanish subsidiary Gerdau Hungria KFT Y CIA Sociedad Regular Colectiva which included 100% of all the operations and assets in India to Blue Coral Investments Holdings Private Limited and Mountain peak Investment Holdings Limited, owned and managed by ADV Partners and affiliates. ADV Partners is an Asia focused private equity firm with offices in Hong Kong, Singapore, Shanghai and Mumbai.
The reason for the sale is to enable Gerdau to focus more on its core markets in North America and Latin America. The change of name of the company follows the official completion of the transaction on Oct 31, 2018.
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ADV Partners together with the existing management, see a great future for growing the SBQ business in Andhra Pradesh and in India and are working on a growth roadmap that will position Arjas Steel, as a center of excellence in the manufacture of SBQ steel. The operations will continue to be run by the current management.
Commenting, Sridhar Krishnamoorthy, Managing Director of Arjas Steel, said: “We are excited by the vision that ADV Partners and we, the management, share for Arjas Steel. Our growth over the last few years, in providing special steel products for the automotive and energy sectors has been strong, thanks to our committed and engaged work force of 1600, strong technical processes and high levels of customer service. We wish to build Arjas Steel, into a Center of Excellence in Special Steel production, coupled with strong financial discipline and engaging our employees with responsibility and respect. We aim to capitalize on the growing automotive market in India and the automotive eco-system in Anantapur. Going forward we do have some agreements in place with Gerdau Steel, to ensure that that this transition to Arjas Steel, is smooth and seamless for our customers, suppliers and other stakeholders.”