Linde India looking to consolidate assets to shore up returns
On the industrial gas maker’s proposed merger with Praxair Inc., Linde India chairman Sanjiv Lamba said the CCI’s view on the matter isn’t immediately clear
Kolkata: After investing around Rs2,500 crore to create new capacity, industrial gas maker Linde India Ltd is looking to consolidate its assets in the country with the aim of shoring up returns as the economy starts to look up, key officials said at the company’s annual general meeting in Kolkata on Monday.
Between 2007 and 2013, the company has invested to scale up its India operations, but the “priority at this point of time is to make sure that we make them deliver”, said Moloy Banerjee, Linde’s managing director.
The company had expected a return on capital employed (ROCE) of 15%. “But we are clearly not there,” Banerjee said, adding that the last two years were “challenging”. The ROCE in 2017 was 7%, according to Banerjee.
Asked about the company’s proposed global merger with Praxair Inc., Sanjiv Lamba, chairman of Linde India, said the competition watchdog’s view on the matter isn’t immediately clear. It isn’t known immediately which assets, if any at all, the Competition Commission of India will ask Linde to divest, he added.
There are some 500 competitors in the industrial gas market in India, and four big multi-national players, including Linde and Praxair, jointly control 50% market share, according to Lamba.
- Reliance Jio seen as India’s No.1 telecom company by 2021
- China backs India’s bid for improved domestic regulations
- How 3.4 million households in UP are using power illegally
- Nissan seeks to block Carlos Ghosn’s access to apartment in Rio de Janeiro
- China says US should withdraw arrest warrant for Huawei executive
Editor's Picks »
- The government has a troubling message for minority shareholders
- Opec-allies’ output cut may not amount to big shift in oil prices
- RBI’s new loan rate math for banks cannot ignore deposits
- Maruti loses speed as PV growth slows amid rising challenges
- Risks emerge for Ramakrishna Forgings, Bharat Forge, Motherson Sumi as heavy-duty trucks face headwinds