MORGANITE CRUCIBLE (INDIA) LIMITED (MCIL) is engaged in business of manufacturing and selling of silicon carbide and clay graphite and its accessories. Silicon carbide and clay graphite crucibles are used primarily as consumables in the manufacture of non-ferroalloys industries. Crucible is manufactured at Aurangabad in Maharashtra. The Aurangabad plant is certified under ISO 9001:2008. MCIL was a joint venture between Cotton Greaves and Morgan group. However, in 2006 it was acquired by Morgan group. In the same year Morganite had made investment in Diamond Crucible company Limited (DCCL) of Rs  4.96 crore for 51% and,  in July 2017 had acquired the remaining stake for Rs 16 crore.

DIAMOND CRUCIBLE COMPANY LIMITED (DCCL) is primarily engaged in manufacture and sale of crucibles and allied refractory products for industrial use having its manufacturing facility at Mehsana in Gujarat. DCCL is currently WoS of the MCIL. DCCL was incorporated on June 23, 1981. The company’s sales are mostly generated from dealers and from few direct customers and primarily services the automobiles industry in India.

TRANSACTION:

Merger of DCCL into MCIL with appointed date October 1, 2017 since it is WoS merger there in no consideration.

Morganite-Crucible-Diamond-Crucible-Merger-1

RATIONALE:

  • Both the companies are engaged in the same line of business and share common corporate values and culture.
  • Simplify the corporate structure and eliminate duplicate corporate procedures.
  • Achieve economy of scales, reduction in overheads

SHAREHOLDING:

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