National Engineering Industries Ltd is buying two companies, one at home and the other in Europe, to expand its product portfolio and increase its geographical presence.
The CK Birla Group company said in a statement it has acquired Slovakia-headquartered Kinex Bearings. It has also sealed a deal to buy to acquire industrial component manufacturer Abok Spring Pvt. Ltd, VCCircle has learnt.
“The Kinex acquisition equips NEI to enhance its scale and further diversify its portfolio with a much stronger position to provide best in class products to both new and existing customers,” group chairman CK Birla said.
The group didn’t disclose financial details of the Kinex deal, saying only that the European company has annual revenue of about 60 million euros.
The deal is part of a strategy by National Engineering, which sells bearings and other components under the NBC Bearings brand, to augment its product portfolio, expand its footprint and acquire new customers.
Kinex supplies products to over 80 countries and employs about 1,000 employees. The acquisition includes two production plants in Slovakia that can produce bearings for railways, industrial segments and textile industry. They also manufacture bearings for aerospace companies and water pump bearings for the automotive sector.
National Engineering president and CEO Rohit Saboo Ltd said the Kinex acquisition “is a significant step forward” in the company’s global ambitions. “This deal positions NEI on the global map with an international manufacturing footprint and the advantages of a more efficient supply chain to serve our global customers.”
Meanwhile, Jaipur-based Abok Spring makes products such as hot coil springs, leaf and parabolic springs, and profile rolling products. These are used by several industries, including railways, automobiles, road building equipment and power generation.
The financial details of the deal couldn’t be ascertained. The transaction is likely to be completed by the end of February.
National Engineering exports bearings to at least 20 countries, including the US, Germany, Brazil, Japan, and Australia. The firm has over 25,000 employees, 41 factories and 21 delivery service locations. It operates in three industry clusters: technology and automotive, home and building, and healthcare and education, its website shows.
The $2.4 billion diversified CK Birla Group houses a number of other companies such as heavy machinery equipment provider GMMCO Ltd, Orient Cement, Orient Electric and Orient Paper. It also runs schools and hospitals in Kolkata, Jaipur and some other cities.