Nature of Disclosure: Regulatory filing pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, announcing a proposed merger.
Proposed Transaction: The Board of Directors of KD Green Industries Limited has approved, in principle, the proposed merger of KD Green Industries Limited and KD Iron & Steel Private Limited. The merger is subject to completion of due diligence, statutory approvals, regulatory clearances, and other necessary approvals.
Strategic Rationale: The merger aims to create a stronger and more diversified industrial conglomerate with a strategic focus on green manufacturing of value-added steel products, AAC Blocks, and infrastructure steel products for power, railways, telecom, and allied industries.
About KD Iron & Steel Private Limited:
- Flagship entity of KD Group and a leading manufacturer of branded steel products in North-East India under the XTECH brand.
- Current Capacities:
- Furnace Capacity: 90,000 MT/annually (current installed capacity for steel melting operations)
- Rolling Capacity: 99,000 MT/annually (current installed capacity)
Sustainable Green Steel Manufacturing:
- Utilizes recycled metal scrap as primary raw material.
- Uses electric induction furnace along with ladle refining furnace.
- Powered increasingly by renewable energy, including a planned 25MW captive solar power plant.
Technology & Innovation Leadership:
- Uses German Technology Computerized Rolling Mills and Thermex Quenching System.
- Produces Seismic Zone-V Certified TMT Bars with Twin Double Ribbed Structure Technology.
- First company in Assam for Direct Rolling of TMT Bars from Molten Steel Billets.
- Only company in North-East India with Tata Sponge Partnership for Technology Upgradation.
Brand Strengthening: XTECH has appointed Bollywood actor Sanjay Dutt and Assamese actress Nishita Goswami as Brand Ambassadors.
Future Growth Roadmap: KD Iron and Steel is undertaking substantial expansion with a total project outlay of ₹325 Crore.
- Capacity Expansion Details:
| Particulars | Current Annually | Post Expansion Annually |
| Furnace Capacity | 90,000 MT | 1,80,000 MT |
| Rolling Capacity | 99,000 MT | 2,00,000 MT |
- The expansion includes a captive solar power plant of 25MW capacity.
- The TMT capacity expansion and captive solar power plant are expected to bring operating leverage and energy cost savings, respectively.
Government Support: The company has received approval for incentives from the Government of Assam, aggregating approximately ₹600 Crore over the next 15 years. These incentives are expected to enhance profitability, strengthen cash flows, and accelerate future expansion.
Management Commentary: The Managing Director stated, "The proposed merger marks a transformational step in our journey towards building a diversified and sustainable industrial conglomerate."
About KD Green Industries & KD Group: KD Green Industries Limited (including its subsidiaries) is engaged in manufacturing AAC blocks under the 'Green AAC Block' brand, Pipes and Poles under the 'XTech' brand, and is setting up steel fabrication for infrastructure. It is part of KD Group of Guwahati, an Integrated Infrastructure & Building Materials Manufacturing Conglomerate with interests in steel, infrastructure, AAC Blocks, and sustainable solutions. The group describes itself as the largest in North East India in sunrise sectors with sustainability, highly profitable businesses, and debt-free with internal accruals funding.
Disclaimer: The document includes a safe harbor statement noting that forward-looking statements are based on estimates and subject to numerous risks and uncertainties.