Specialty cable manufacturer CMI Ltd has acquired a fully developed manufacturing facility of Danish firm FLSmidth Pvt Ltd at Bawal, Haryana, to meet the rising demands of its products, according to a stock market disclosure.
The facility is spread over an area of 1,01,115 sq ft with built up area of 67,000 sq ft, and possesses all the necessary clearances and facilities required for industrial production.
CMI is looking to invest around Rs 20 crore (approximately $3 million) on the acquisition and sprucing up the facility, which would help the company to augment its capacity. It expects to commence production from this unit within this financial year.
Copenhagen-based FL Smidth is a global engineering company supplying one source plants, systems and services to the cement and minerals industries.
Incorporated in 1967, CMI (formerly known as Choudhari Metal Industries) was initially engaged in copper metal trade and copper melting and rod casting, and later diversified to cables’ business.
It currently manufacturers wide variety of specialty cables to meet demand of core infrastructure sectors in India like telecommunication, railways, shipbuilding and petrochemicals.
In the year ended March 31, 2015, CMI had posted a net profit of Rs 6.3 crore on revenues of Rs 137 crore.
On Wednesday, shares of CMI last traded at Rs 191.10 each, up 3.47 per cent on BSE in a strong Mumbai market.