Adarsh Mercantile Limited has recently acquired a minority stake in Sai Machine Tools Pvt. Ltd. (SMT), a prominent manufacturer of plastic processing machinery based in Indore, Madhya Pradesh. This strategic investment, valued at approximately INR 27.44 crore, involves the issuance of 12.85 million common equity shares of Adarsh Mercantile Limited in exchange for common equity in SMT. ​

Sai Machine Tools Pvt. Ltd., incorporated on April 13, 1989, has established itself as a leader in the plastic processing machinery sector in Central India. The company operates state-of-the-art manufacturing facilities equipped with advanced technologies such as CNC laser cutting, CNC tool rooms, CNC sheet bending systems, and hard chrome plating. These capabilities enable SMT to produce high-quality machinery for various plastic processing applications. ​

Over the past three financial years, SMT has demonstrated robust financial performance:​

• FY 2022: Revenue of INR 78.50 crore.​

• FY 2023: Revenue of INR 114.80 crore.​

• FY 2024: Revenue of INR 127.78 crore. ​

The acquisition by Adarsh Mercantile Limited is aimed at expanding its footprint in the plastic processing machinery industry, leveraging SMT's established market presence and technological expertise. This move aligns with Adarsh Mercantile's strategy to diversify its portfolio and capitalize on growth opportunities in the manufacturing sector.​

The transaction is subject to approvals from Adarsh Mercantile's shareholders and board of directors, with an expected completion timeline of 2 to 3 months. ​

This acquisition is anticipated to have significant implications for the plastic processing machinery sector, potentially leading to enhanced product offerings, improved technological advancements, and a strengthened market position for both companies.​

For readers interested in the latest developments in the business and manufacturing sectors, staying informed about such strategic acquisitions is crucial. These moves often signal shifts in market dynamics and can provide insights into emerging trends and investment opportunities.​

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