Kirloskar Bros to acquire Gondwana, double capacity

Kirloskar Bros to acquire Gondwana, double capacity
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First Published: Tue, Sep 11 2007. 06 54 AM IST
Updated: Tue, Sep 11 2007. 06 54 AM IST
Kirloskar Brothers Ltd has lined up over Rs120 crore worth of investments to more than double its capacity of large and industrial pumps at Kirloskarwadi, its Maharashtra- based plant and for setting up a new corporate headquarters, that will include a large design centre.
The investments, to be made in a phased manner, will take the company’s large pumps capacity to 700 from the current 300, and that of industrial pumps from 3,000 units to 5,000 units by March 2008, director R.K. Srivastava said, adding, capacities for the latter would touch the 10,000 mark in the next phase in the following fiscal.
Part of the Rs4,500 crore Kirloskar group of companies, the firm will also expand its existing design centre in Pune when it moves into a new corporate headquarters next year, Srivastava said. “We plan to invest in the latest technology for the design centre and will increase the number of engineers working there from 30 to 100 in a year,” he said.
Aiming for a larger share of the country’s growing market for sewage and water treatment solutions, Srivastava said on Monday it was acquiring 100% equity shares of Gondwana Engineers Pvt. Ltd, an established player in the business, for Rs7.06 crore.
“The acquisition will get us immediate access to proven technology and will give Gondwana Engineers the opportunity to bid for larger projects,” he added. Worth Rs1,700 crore last year, the water and sewage treatment business in India is expected to touch Rs3,000 crore this year as state governments wake up to environmental concerns by rolling out separate bodies that will tackle the treatment needs of individual municipal corporations.
Srivastava said the move is in keeping with its strategy of expanding the water and sewage treatment business where it is currently handling orders over Rs300 crore in Kerala, Karnataka and Andhra Pradesh through partnerships with foreign players. The company also plans to tap business in African and South East Asian countries.
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First Published: Tue, Sep 11 2007. 06 54 AM IST