GE has acquired a majority stake in Advanced Systek, a Vadodara-based firm engaged in terminal automation and metering skid solutions in India, for an undisclosed amount.
As per the arrangement, the promoters of Advanced Systek would continue as directors and work with GE to grow the current business.
Advanced Systek (formerly Daniel Measurement & Control (India) Pvt. Ltd.) is one of India's largest terminal automation system supplier (oil & gas automation). Established in 1988 to provide fiscal metering and automation expertise to Indian clients, in October 2007 the metering business division was de-merged out forming a new company Daniel Measurement Solutions Pvt. Ltd. (DMS).
Its automation systems provide solutions for pipeline transfer/storage & distribution of chemical, petrochemical and petroleum products in road tankers, rail wagons and barges at distribution depots, marketing terminals, refineries, ports, and retail outlets in India and abroad.
Commenting on the transaction, Umed Fifadra, joint managing director, Advanced Systek, said, “This transaction is a confirmation of the strong franchise we have built over the years and our leadership position in the terminal automation and metering skid solutions space. Association with GE will provide a larger platform for us to deliver our traditional solutions and build on synergies to explore newer areas for growth.”
Mukesh Kapadia, joint managing director, Advanced Systek, added, “We have worked with marquee customers like HPCL, BPCL, IOCL in India and post this association with GE, we look forward to working with global customers, while enhancing our engagement with the Indian customers on the back of GE’s product portfolio and knowledge.”
Avendus Capital and Shah Sanjeev & Associates were the financial advisors to Advanced Systek for this transaction.
For GE this would be second such strategic equity investment in manufacturing space. Two years ago it had formed an equal equity JV with Triveni Engineering to make and sell steam turbines for small power generation projects. This came right after Triveni decided to demerge the engineering unit into a separate listed company. The parent company will house the sugar business after this restructuring.
GE has been looking to strike a decentralised 'reverse innovation' approach to its India expansion plans.