Asset Shift: Maithan Alloys Inks Rs 254.8 Million Deal For Byrnihat Unit Sale

Updated: October 07, 2025 14:59

Image Source : www.maithanalloys.com

Maithan Alloys Ltd has signed an agreement to sell the capital assets of its Byrnihat unit for Rs 254.8 million. The divestment supports its asset-light strategy and operational focus. Proceeds may be used for working capital or expansion, while core manufacturing units in Jharkhand and Odisha remain unaffected.

Maithan Alloys Ltd has formally entered into an agreement to sell the capital assets of its Byrnihat unit for Rs 254.8 million, marking a strategic divestment aimed at streamlining operations and reallocating resources toward core growth areas. The transaction reflects the company’s evolving asset-light strategy.

Transaction Highlights

- The sale agreement covers key capital assets of the Byrnihat manufacturing unit located in Meghalaya

- The total deal value stands at Rs 254.8 million, excluding applicable taxes and duties

- The buyer’s identity remains undisclosed, pending regulatory and procedural formalities

- The transaction is expected to be completed within Q3 FY2026, subject to customary approvals

- Maithan Alloys will continue to operate its other facilities in Jharkhand and Odisha, which remain central to its ferroalloy production strategy

- The company has clarified that the sale will not impact its ongoing customer commitments or supply chain continuity

Strategic Takeaways

- The divestment aligns with Maithan’s focus on operational efficiency and capital reallocation

- Proceeds from the sale may be used to strengthen working capital, reduce debt, or fund expansion in high-margin product lines

- The Byrnihat unit had lower utilisation rates compared to other plants, making it a candidate for strategic exit

- Analysts view the move as a positive step toward portfolio optimisation and long-term profitability

Market Outlook

- Maithan Alloys continues to benefit from stable demand in the steel and infrastructure sectors

- The company is exploring automation and capacity upgrades at its flagship units to improve yield and energy efficiency

- The asset sale may improve return ratios and reduce fixed cost overheads

- Investor sentiment is expected to remain steady, with attention shifting to Q3 earnings and future capex plans

Sources: BSE Corporate Filings, Maithan Alloys Investor Relations Update, Economic Times Metals Desk, Mint Manufacturing Tracker, Business Line Industrial Briefs 2025

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