New Delhi: Norfolk Group Limited, an establisher Australian provider of integrated electrical, communications, HVAC (heating, ventilation and air conditioning), passive fire protection and property services announced its international expansion into India on 12 September through the acquisition of 85% of Trans American Air-conditioning, an Indian HVAC business. The founder of Trans American Air-conditioning, Farhan Pettiwala, will retain a 15% shareholding in the company.
This is Norfolk’s (recently listed on the Australian Securities Exchange) first acquisition activity outside Australia and New Zealand. Trans American is a known name in the realm of HVAC in Indian market. The business operates eight sites throughout India with a corporate customer base and is churning revenue secured via annual maintenance contracts.
Having identified as the highest performing dealer in India for Carrier, Voltas and Daikin air-conditioning units, the business is well supported with more than 200 staff and proven accounting, HR and administrative systems.
Trans American Air-conditioning’s forecast revenue is approximately A$3 million and earnings before interest and tax (EBIT) is A$420,000. Glenn Wallace, managing director of Norfolk, said: “The acquisition is a part of Norfolk’s international expansion strategy and is a low-risk way for Norfolk to participate in India’s economic expansion.”
India’s economy is expanding rapidly. Structural reforms are generating rapid growth in the Indian economy and in all real estate markets including commercial, retail, tourism and industrial.
“In particular penetration of air conditioning in India remains low at around 2% of commercial property. There is robust demand for commercial office space in India as the multi-national and domestic corporate sector increases. Foreign companies operating in India are driving the demand for high quality air-conditioning in corporate real estate. Trans American Air-conditioning is well placed to continue capitalizing on this demand and respond to existing Norfolk customer demand to expand into new markets, such as India” he said.
Pettiwala will remain as the Managing Director of Trans American Air-conditioning and will be active in Norfolk’s expansion plans in India. Commenting upon the acquisition, Pettiwala said: “ By joining with Norfolk we now have the right financial backing to support Trans American Air-conditioning’s continued growth.”