AIA Engineering Limited , a prominent player in the mining equipment industry, has officially completed a significant expansion of its mining liner business through its wholly-owned subsidiary, Vega Industries (Middle East) FZC (Vega ME). The subsidiary has successfully acquired an additional 14% stake in VEGA MPS PTY LIMITED (VMPS), an Australian company specializing in mining liners and related services.

Acquisition Completion Details

According to the regulatory filing submitted to stock exchanges, the transaction was completed on December 10, 2025, at 11:20 AM when Vega ME paid the purchase consideration against the transfer of shares by VMPS promoters.

Target Company Profile

VMPS is a proprietary limited company incorporated on June 28, 2023, under Australian laws. The company acquired the entire business of Mining Products and Service Pty. Ltd., Australia (MPS) during FY 2023-24. VMPS operates in the design and supply of mining liners and other parts, process engineering, project management, and quality control capabilities for the mineral processing industry.

Financial Performance Overview

Strategic Rationale

The acquisition aligns with AIA Engineering's objective to strengthen its mining liner business globally. This transaction represents the completion of the Share Purchase and Shareholders Agreement dated August 3, 2023, demonstrating the company's commitment to its strategic expansion plans in the mineral processing industry.

The deal is classified as a related party transaction since Vega ME already held a 56% stake in VMPS prior to this additional acquisition. The company has confirmed that the transaction was conducted at arm's length, ensuring fair valuation and compliance with regulatory requirements.

Regulatory Compliance

AIA Engineering has fulfilled all disclosure requirements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that no additional governmental or regulatory approvals were required for completing this acquisition, facilitating a smooth transaction process.

AIA Engineering Limited , a leading manufacturer of high chromium wear, corrosion, and abrasion resistant castings, has reported a stable performance for the second quarter, while also securing a significant breakthrough in the South American market.

Financial Performance

For Q2, AIA Engineering reported:

The company maintained a steady performance compared to the previous quarter, with a slight increase in sales volume from 60,000 tons in the same quarter of the previous year to 63,000 tons in the current quarter.

Major Chilean Contract

In a significant development, AIA Engineering has secured an 18-month contract from a Chilean customer, marking its first major breakthrough in the South American copper mining market. The contract, valued at approximately Rs. 33.00 million, is for 22,000-23,000 tons of hi-chrome grinding media solutions.

This represents the company's first customer using hi-chrome for grinding media in the region, potentially opening up new opportunities in the lucrative South American market.

Future Outlook

AIA Engineering is conducting trials at multiple mining sites and expects potential volume growth of 30,000 tons annually from next year. This growth is anticipated to be driven by the company's integrated liner and grinding media package solutions.

Management indicated that most future sales will likely come from solution-based offerings rather than individual products. This approach could help the company avoid anti-dumping and pricing pressures, potentially leading to more sustainable growth.

Capacity Utilization and Expansion

The company currently maintains a capacity utilization of 55-60% of its 460,000 tons annual capacity. This indicates room for growth without immediate need for significant capital expenditure.

Market Position

AIA Engineering's focus on providing integrated solutions, combining hi-chrome grinding media with specialized liners, appears to be a key differentiator in the market. The management believes that this approach, which offers improved throughput and efficiency for mining operations, sets them apart from competitors who may focus solely on individual products.

As the mining industry continues to seek ways to improve efficiency and reduce costs, AIA Engineering's solution-based approach could position it well for future growth, particularly in underserved markets like South America.

The company's recent success in Chile could serve as a springboard for further expansion in the region, potentially leading to significant volume growth in the coming years.