Systematic Industries Limited (SIL) announced the acquisition of a Galvanized Iron (GI) Wire manufacturing facility located at Siltara, Chhattisgarh. The disclosure is made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Acquisition Details

The acquired facility spans approximately 10 acres and has an installed capacity of 48,000 metric tonnes per annum (MTPA) of GI wires. The plant is fully operational.

Strategic Rationale

The acquisition aligns with SIL's long-term strategy of scaling its core wire business and strengthening its presence in infrastructure-linked segments. Key strategic benefits include:

  • Capacity Expansion: Enhances installed capacity by approximately 48%, taking total capacity to approximately 148,000 MTPA across five manufacturing units
  • Geographic Advantage: Strengthens presence in Central India, enabling faster access to high-growth markets
  • Demand Alignment: Supports rising demand from power transmission & distribution and infrastructure sectors
  • Market Positioning: Reinforces SIL's standing as a key national player in the GI wires segment

Synergies and Financial Impact

The acquisition is expected to deliver operational and financial synergies by leveraging the strategic location to optimize logistics costs and improve service efficiency across pan India. Integration with SIL's existing distribution and customer network will enable better capacity utilization and support faster fulfillment. The transaction is immediately EPS accretive. Funding was executed through a balanced approach ensuring disciplined capital allocation while maintaining the company's net debt-free balance sheet.

Management Commentary

Mr. Siddharth Rajendra Agarwal, Chairman and Managing Director, stated: "This acquisition marks a significant step in strengthening our core business and accelerating our growth journey. It enhances our capacity meaningfully and improves our ability to serve customers efficiently across key markets. The strategic location of the facility, coupled with its operational readiness, enables us to quickly realise synergies and capitalise on the growing demand in the infrastructure and power sectors."

Company Background

Systematic Industries Limited, founded in 2000, is India's 3rd largest manufacturer of steel wires and cables according to Care Edge Report. The company operates five manufacturing facilities across India with a combined installed capacity of 148,000 MTPA and serves customers across approximately 25 states and over 30 countries globally. SIL is an approved vendor for key government and utility bodies, including RDSO and Power Grid Corporation of India Limited, and is a development vendor for Fibre Armoured Optical Fibre Cables and Optical Ground Wires (OPGW).