Yash Birla Group has struck its second deal in less than a month by acquiring Kolkata-based Aircon Engineering Services for an undisclosed sum, thus marking its entry into the infrastructure and real estate business. The firm has been renamed as Birla Aircon.
The acquisition by the Rs 3,000 crore group which has an exposure to education, IT, auto & engineering, textiles & chemicals, power & electricals and wellness, will now allow the group to focus on power, road & highways, housing & building work, high voltage transmission lines, roads and related fields.
With India expected to spend around $1 trillion on infrastructure during the 12th Five Year Plan (2012-17), the Yash Birla Group sees tremendous opportunities for private players to grow in the sector, the company said on Monday.
Commenting on the rationale behind the deal, PVR Murthy of the Yash Birla Group said, “With the kind of infrastructure spending proposed over the next decade, ample opportunities will come our way. Infrastructure would be a big space in the next seven to eight years and would witness massive investments.”
Aircon Engineering Services has expertise in the infrastructure domain and has a host of clients, both government and private, such as National Buildings Construction Corporation Ltd, West Bengal Housing Board, Kolkata Metropolitan Development Authority, West Bengal Housing Infrastructure Development Corporation Ltd, ONGC Ltd, Kolkata Municipal Corporation and Larsen & Toubro Ltd.
Aircon Engineering Services has also bagged single orders worth Rs 36 crore from WB Housing Board for a multi-storey building project and a road project worth Rs 15 crore from KMDA.
The group said last week that it had acquired 48 per cent in ayurvedic spa chain firm Birla Kerala Vaidyashala (BKV) to raise its stake in the firm to 99 per cent. The stake was acquired for an undisclosed amount from the Kurup family who continues to own 1 per cent in the company. The move strengthens the group’s presence in the health & wellness segment. It had acquired 51 per cent in the joint venture with the Kurups three years ago.