Tega Industries Bets Big on Molycop Acquisition to Become a Global Mining Consumables Giant

Tega Industries, a mid-sized leader in mining consumables and equipment with ₹50 billion in revenue, has entered a term sheet to acquire Molycop—a company nearly twice its size—at an enterprise value of ₹130 billion, marking one of the boldest moves by an Indian midcap. Under the deal, Tega will hold a 77% stake, investing ₹31.8 billion alongside Apollo Funds (23%, ₹9.5 billion). The acquisition includes ₹89.1 billion of debt, but crucially, it is non-recourse to Tega, protecting its existing balance sheet. Post-deal, Tega’s total debt is expected to rise to ₹101.7 billion. To fund its share, Tega plans to raise ₹21.8 billion via preferential allotment and QIP, diluting promoter holding from 74.8% to 65.2%. The merger combines Tega’s strength in wear-resistant mill liners and material handling with Molycop’s global leadership in grinding media (grinding balls, high-chrome alloys) and process solutions. Together, they aim to offer end-to-end mineral processing consumables, targeting leadership in the $10–12 billion global market. With operations across 92+ countries and manufacturing in India, Chile, South Africa, and Australia, the combined entity will serve over 700 customers worldwide. The deal also includes a contingent payment of ₹10.5 billion linked to EBITDA from reopened mines. While the move significantly stretches Tega’s financials, it reflects strong conviction in synergies and global scale. If integrated well, this bold leap could redefine Tega as a dominant global player—proving that sometimes, punching above your weight can create a new weight class.