KEC International Ltd, an RPG Group company, said it has acquired a Dubai-based automated transmission tower manufacturing facility to grow its business in the Middle East and North Africa.
The factory has a capacity of 50,000 tonnes a year, KEC said in a stock-exchange filing. It didn’t disclose the deal value.
KEC said the factory, bought in a sale conducted by the Emirates Auction Authority, will help it offer engineering, procurement, and construction services to clients in the region.
It will also enhance KEC’s credentials to secure additional business in the region on account of local price preferences and fiscal benefits, the company said.
KEC International is the flagship company of Harsh Goenka-led RPG Group. It operates in power transmission and distribution, railways, solar energy, and other sectors. The company has executed projects in 30 countries.
Its parent RPG Enterprises has a turnover of $4 billion with diverse business interests in the areas of infrastructure, tyres, pharma, IT and specialty and in emerging innovation-led technology businesses.
KEC said the strategic location of the acquired plant with the proximity to world-class infrastructure facilities – Jebel Ali Port and Al Maktoum International Airport- sharpens the ability of the firm to improve efficiencies and brings flexibility in utilising the facility to serve as a hub for merchant supplies of towers.
With this acquisition, KEC now has six facilities, manufacturing transmission towers, railway, and solar structures, monopoles and hardware spread across India, the UAE, Brazil and Mexico with a total manufacturing capacity of up to 4,22,200 tonnes per annum, making it one of the largest globally operating transmission and distribution player.
“This facility will help us in expanding our business at a time when we are clearly witnessing resurgence of tendering activity in the Middle East and North Africa,” said Vimal Kejriwal, MD and CEO at KEC International Ltd.
In 2018, billionaire Gautam Adani-led Adani Transmission Ltd had signed a pact with KEC International Ltd to acquire a transmission project - KEC Bikaner Sikar Transmission Pvt. Ltd - for an enterprise value of Rs 227.5 crore ($31 million) in cash.
In April 2015, VCCircle reported that KEC International inked a pact to sell its 381 telecom sites in Chhattisgarh, Meghalaya and Mizoram to NASDAQ-listed American Tower Corp's (ATC) Indian arm for Rs 81 crore.
For 2018-19, KEC International reported a consolidated growth of 8% in net profit at Rs 496 crore while the growth in October to December quarter 2019-20 stood at 29% with a net profit of Rs 145 crore.
Its revenue from operations for the third quarter in 2019-20 grew 16% at Rs 3,073 crore while for the full year in 2018-19 it increased 9% to Rs 11,000 crore.