Kirloskar Pneumatic to acquire majority stake in Systems & Components India
Kirloskar Pneumatic Company Ltd. (BSE: 505283, NSE: KIRLPNU), a prominent entity in the air, refrigeration, and gas compressor sectors, has signed a memorandum of understanding (MoU) to acquire a majority stake (above 51%) in Systems & Components India Private Ltd. (S&C). This move marks a significant strategic expansion for Kirloskar Pneumatic Company Ltd. into the industrial refrigeration market.
Systems & Components India Private Ltd. has been a notable player in the industrial refrigeration sector for over 30 years, boasting more than 700 installations across various industries, including dairy, pharmaceuticals, chemicals, and fertilizers. The company operates a manufacturing facility in Village Patgaon, near Murbad, Maharashtra.
Mr. V. Sundararajan, the current promoter and technocrat, will continue to be involved with the company. His ongoing investment and expertise are expected to assist in scaling up the business post-acquisition. This continuity in leadership is anticipated to ensure a smooth transition and ongoing growth.
The acquisition will empower Kirloskar Pneumatic Company Ltd. to scale its operations and expand into related segments within the industrial refrigeration industry. This strategic move aligns with the company’s broader growth objectives and will likely enhance its market presence.
The transaction is expected to be finalized within the next three months, pending due diligence and closing adjustments. This period will allow both companies to ensure all regulatory and operational requirements are met, setting the stage for a seamless integration.
Commenting on the acquisition, Mr. V. Sundararajan stated, “This partnership with Kirloskar Pneumatic Company Ltd. is a significant step forward for Systems & Components India Private Ltd. It will enable us to leverage Kirloskar’s extensive resources and market presence to scale our operations effectively.”
The acquisition of Systems & Components India Private Ltd. by Kirloskar Pneumatic Company Ltd. represents a strategic maneuver to enhance its industrial refrigeration capabilities. By integrating S&C’s established market presence and technological expertise, Kirloskar Pneumatic Company Ltd. is poised to strengthen its position in the industrial sector. This move is likely to drive significant growth and innovation within the company, enabling it to cater to a broader range of industries.