Assa Abloy makes second India acquisition in Shree Mahavir Metalcraft1 min read . Updated: 08 Aug 2017, 02:46 AM IST
Swedish lock-maker Assa Abloy says Shree Mahavir Metalcraft, after the acquisition, will continue to function under the current management led by its founders
Sweden’s Assa Abloy, the world’s largest lock-maker, has bought a majority stake in Jamnagar-based Shree Mahavir Metalcraft Pvt. Ltd, the two companies said. The deal value was not disclosed.
A leading manufacturer of architectural hardware and locks, Shree Mahavir is also a vendor to leading lock brands such as Godrej and Dorma.
“Shree Mahavir is an attractive addition to the Asia-Pacific division and reinforces our position in the India market. The acquisition offers the potential to develop market-specific competitive products and complements our existing Indian business," said Magnus Kagevik, executive vice-president and head of Asia-Pacific region at Assa Abloy.
“Shree Mahavir will continue to function under the current management team led by its founders," Manu Ahuja, president, India and South-East Asia, Assa Abloy told Mint in an interview after the announcement.
“The acquisition is critical for us in India, which is poised to become one of the largest markets for locks in the coming years," he added.
Established in 1984, Shree Mahavir has about 960 employees and makes door locks, handles, hinges and glass connectors.
Following the acquisition, it will become a subsidiary of Assa Abloy, which operates in 70 countries, employs 47,000 and has a global revenue of 71 billion Swedish krona.
“We have touched revenues close to Rs200 crore per annum and we felt that this is an opportune time for us to align with a global brand like Assa Abloy," said Dhiren Shah, managing director, Shree Mahavir.
“In the coming years, the demand for mechanical and digital locks is going to grow manifold and the demand is going to shift significantly towards the digital locks segment and we are well-placed to tap that opportunity," Shah added.
This is the second acquisition by Assa Abloy in India.
In 2014, the company acquired the locks and hardware business under the ENOX brand from Mumbai-based Pooja Hardware Pvt. Ltd.
“We estimate the current market for locks and related hardware to be over Rs5,000 crore and growing," said Ahuja.
Since 1995, Assa Abloy has made over 150 global acquisitions, which include specific divisions of Medeco in the US, Mul-T-Lock in Israel, Fichet-Bauche in France, and VingCard Elsafe International in Norway. Its competitors include Allegion, Stanley Black and Decker, Dormakaba, Hager Companies and Hörmann.