Kirloskar Ferrous Industries has successfully resumed operations at its Solapur manufacturing plant after resolving the Liquefied Petroleum Gas supply disruption that temporarily affected production. The company filed this update under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Operations Successfully Restored

The High Pressure Moulding Line that was shut down due to LPG supply issues has resumed operations with effect from March 21, 2026, using alternate fuel sources. This development comes just four days after the initial disruption that began on March 17, 2026.

LPG Supply Chain Resolution

The original disruption stemmed from affected LPG supply following disruptions in global energy supply chains linked to the Middle East conflict. The company's proactive approach in securing alternate fuel sources has enabled the swift restoration of full manufacturing capacity at the Solapur facility.

Financial Impact Assessment

The company has confirmed that the temporary stoppage of operations at the Solapur plant did not have any material financial impact. This indicates that the brief four-day disruption was managed effectively without significant revenue loss or operational setbacks.

Regulatory Compliance and Communication

The update was communicated in continuation of the earlier disclosure dated March 17, 2026, maintaining transparency with stakeholders. Company Secretary Mayuresh Vinayak Gharpure digitally signed the official communication on March 21, 2026, ensuring compliance with regulatory requirements and keeping stock exchanges informed of the operational developments.

Kirloskar Ferrous Industries Limited has received a significant regulatory approval for its proposed merger scheme involving two wholly-owned subsidiaries. The National Company Law Tribunal (NCLT) Mumbai issued an order dated March 17, 2026, providing key dispensations that will facilitate the consolidation process.

NCLT Order Details

The tribunal has granted dispensation from holding meetings across multiple stakeholder categories. The order eliminates the requirement for equity shareholder meetings for all three companies involved in the merger - Oliver Engineering Private Limited (OEPL), Adicca Energy Solutions Private Limited (AESPL), and Kirloskar Ferrous Industries Limited.

Subsidiary Business Operations

The merger involves companies with complementary business activities. Oliver Engineering Private Limited operates in ferrous casting and machining, while Adicca Energy Solutions Private Limited focuses on turnkey solar power projects and renewable energy consultancy. The parent company manufactures pig iron, grey iron castings, tubes and steel for tractor, automotive and diesel engine sectors.

Share Capital Structure

The financial structure of the companies reflects the wholly-owned subsidiary relationship that enabled the streamlined approval process.

Creditor Position and Consent

The approval process was facilitated by substantial creditor consent. Oliver Engineering has 192 unsecured creditors with outstanding amounts of ₹2,45,45,95,049.49 as on December 31, 2025. Adicca Energy has one unsecured creditor with ₹3,97,30,340 outstanding. Significantly, Kirloskar Ferrous Industries constitutes 93% of Oliver Engineering's creditors and is the sole creditor of Adicca Energy Solutions.

Strategic Rationale

The merger scheme aims to achieve multiple strategic objectives:

• Consolidation of businesses for long-term sustainability and growth
• Streamlining of holding structure to reduce regulatory compliance
• Cost optimization through focused operational efforts and elimination of duplication
• Leveraging synergies and achieving economies of scale
• Greater integration and flexibility to strengthen market position

Regulatory Compliance

The companies must serve notices to various regulatory authorities including the Central Government, Registrar of Companies, Income Tax Authority, GST Authority, and BSE Limited. The appointed date for the scheme is April 1, 2025, with board approvals obtained on August 4, 2025. Upon scheme effectiveness, the subsidiaries will be dissolved without winding up, and their share capital will be automatically cancelled.