Mumbai-based Crompton Greaves Ltd (CGL), the flagship company of Gautam Thapar-promoted Avantha Group, has entered into a definitive agreement with Himachal Pradesh-based Karma Industries to buy its compact fluorescent (CFL) manufacturing business for $2.6 million (Rs 14.5 crore), as per a BSE filing.
This acquisition will double CG’s capacity in the fast-growing CFL segment and will be integrated with the consumer business unit.
Karma Industries manufacturing facility is based in Baddi in Himachal Pradesh with a capacity to manufacture two million lamps per month.
“This acquisition reinforced our presence in the rapidly growing Indian consumer market. The facility can manufacture two million lamps per month, not only providing us with immediate capacities but also allowing us to offer a complete range of CFL lamps,” said CG’s CEO and MD Laurent Demortier.
“The facility will enable us to better serve our customers and channel partners with high quality products,” said Ash Gupta, president of consumer business, CG.
Founded in 1992, New Delhi-based Karma Industries manufacturers lightening products such as spiral compact fluorescent lamps, two-tube and three-tube compact fluorescent lamps.
Crompton Greaves is a manufacturer of electrical products and services which offers power systems, industrial systems and consumer products including transformer, switchgear, fans, light sources, pumps, electric motors, harmonic filters, transient suppressors, current limiting reactors, diesel electric locomotives and railway signalling products.
This is the 12th acquisition of the firm since 2005. In July, 2012, it had acquired ZIV Aplicaciones y Tecnología S.L. Prior to that, the firm had acquired QEI Inc., Emotron AB, Nelco Ltd., Assets and Power Technology Solutions Ltd, among others.
(Edited by Prem Udayabhanu)