Systematic Industries announced the acquisition of a Galvanized Iron (GI) Wire manufacturing facility located in Siltara, Chhattisgarh, on August 4, 2026. The deal adds 48,000 metric tonnes per annum (MTPA) of installed capacity, increasing the company’s total production capability to 1,48,000 MTPA across its five operational units. This expansion addresses rising demand in power transmission and infrastructure sectors while strengthening the company’s geographic presence in Central India.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The acquired facility spans approximately 10 acres and is fully operational, allowing for immediate integration into the company’s distribution network. Management stated that the transaction is immediately earnings per share (EPS) accretive, supported by a balanced funding approach and a net debt-free balance sheet.

Capacity and Geographic Expansion

The acquisition represents a significant scale-up for Systematic Industries, enhancing its installed capacity by approximately 48%. The new facility enables faster access to high-growth markets in Central India, optimizing logistics costs and improving service efficiency. By leveraging this strategic location, the company aims to improve capacity utilization and support quicker order fulfillment across its pan-India customer base.

Strategic Rationale and Synergies

Siddharth Rajendra Agarwal, Chairman and Managing Director, highlighted that the acquisition aligns with the company’s long-term strategy of scaling its core wire business. He noted that the operational readiness of the plant allows for the quick realization of synergies, capitalizing on growing demand in the infrastructure and power sectors. The company emphasized that the disciplined funding approach ensures sustainable scaling without compromising financial stability.

The expanded footprint supports cross-selling opportunities across Systematic Industries’ broader product portfolio, which includes steel wires, cables, and optical fibre solutions. As an approved vendor for key government bodies such as the Research Designs and Standards Organisation (RDSO) and Power Grid Corporation of India Limited, the increased capacity positions the company to secure larger contracts in railway, telecom, and power transmission projects.

What the Numbers Show

The immediate EPS accretion from a fully operational asset indicates a low-risk expansion strategy compared to greenfield projects. With a combined capacity of 1,48,000 MTPA spread across five units, Systematic Industries reinforces its position as India’s third-largest manufacturer of steel wires and cables, according to Care Edge Report data. The focus on geographic diversification into Central India suggests a strategic shift to reduce logistical bottlenecks and serve regional infrastructure demands more efficiently.

Systematic Industries Limited has accepted the resignation of Mr. Bhagwan Das as an Independent Director, effective June 22, 2026. The resignation was submitted on personal grounds, and the director confirmed there are no other material reasons for his departure.

The company informed BSE Limited regarding the change in its board composition pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Mr. Bhagwan Das has been relieved of his duties effective from the stated date.

Resignation Details

The disclosure was made in compliance with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The director confirmed that his decision was driven by personal and unavoidable circumstances.

Mr. Bhagwan Das stated in his resignation letter that he holds no other directorships in listed entities. The company has acknowledged the receipt of the resignation and will proceed with the necessary filings with the Registrar of Companies.