Key Quantitative Figures
- Total initial investment: ₹80,00,00,000 (Indian Rupees Eighty Crore)
- Equity split: Interarch 76%, ER Steel Inc. 24% on fully diluted basis
- Initial contribution structure: 25% (₹20 crore) at incorporation, remaining 75% (₹60 crore) in three equal tranches of ₹20 crore each
- Funding to be contributed in agreed shareholding ratio (76:24) throughout tranches
Dates of Action
- Board approval: Thursday, August 6, 2026
- Digital signature timestamp: August 6, 2026, 17:46:11 IST
Parties Involved
- Interarch Building Solutions Limited (Indian company)
- ER Steel Inc., Canada (JV partner)
- Joint Venture Company (JVCo) to be incorporated in India
Purpose and Rationale
Strategic business growth initiative for international expansion into North American markets for Open Web Steel Joists (OWSJ) products. The collaboration aims to establish a structured framework for evaluating design, engineering, manufacturing, and supply of OWSJ products through a scalable and cost-efficient platform in India.
Business Scope and Division
- Interarch responsibilities: Engineering, detailing, manufacturing, and quality compliance activities from India
- ER Steel responsibilities: Market development, customer relationships, sales, and marketing activities in USA and Canadian markets
- Target markets: USA and Canada
Significant Terms and Conditions
- Equity structure fixed at 76% Interarch and 24% ER Steel throughout funding stages
- Funding structure includes initial contribution and three equal tranches subject to conditions precedent
- ER Steel must enter into Offtake Agreement with JVCo to purchase minimum quantity of OWSJ products for distribution and sale in Canada & USA
- Interarch will incorporate JVCo in India, which will execute Deed of Adherence to be bound by JV terms
- Agreement sets management and regulatory framework for JVCo
Related Party Transaction Status
No related party transactions involved. Promoter/promoter group/group companies have no interest in ER Steel Inc. The transaction is conducted at arm's length.
Investment Size and Expansion Plans
Total initial investment planned is ₹80 crore. The company has option to expand further depending on business growth.
Expected Benefits and Market Outlook
- Opens new market for Interarch in North America through ER Steel's established presence
- Combines Interarch's engineering & manufacturing strength with ER Steel's market knowledge
- Short-term goal: Capture 2-5% market share in next three years
- Creates completely new revenue stream for the company
Additional Information
Intimation also uploaded on company website at www.interarchbuildings.com