Chandigarh-based KDDL Ltd, a manufacturer of watch components, has agreed to acquire Switzerland-based watch hands maker Estima AG for 400,000 Swiss francs ($404,000 or Rs 2.92 crore) in cash.
KDDL, which counts SAIF Partners and Kitara Capital among its institutional investors, is acquiring Estima through its subsidiaries Pylania SA and Kamla International Holdings SA, the company said in a stock-exchange disclosure.
The acquisition will help the company to capture additional share in the European market serviced by Estima, KDDL said.
The transaction is expected to close by 7 January 2019.
Established in 1924, Estima AG is a manufacturer of watch hands.
Estima is a supplier to Swiss and other European watch brands in the mid-priced segment. KDDL said Estima, over the last 10 years, was unable to keep up with market changes and lost market share, leading to declining revenue and mounting losses.
KDDL further added that Estima will be a good platform for the company to establish a foothold in Swiss watch component manufacturing.
Founded in 1981, KDDL manufactures watch dials, hands and other components. The company is also present in the luxury watch retail business through its subsidiary Ethos, which runs 45 luxury watch stores across the country, according to its website.
Earlier this year, VCCircle reported that Ethos was planning to float its initial public offering.
KDDL draws the bulk of its overall revenue from the retail arm. The company’s consolidated revenue from operations stood at Rs 503 crore for the year through March 2018, up from Rs 458 crore the previous year.