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| UPDATE: McNally Bharat to acquire engineering workshop in Germany |
| BS Reporter / Kolkata May 06, 2009, 16:09 IST |
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McNally Bharat Engineering Company (MBE), a joint venture between the Williamson Magor group and GP Birla group, will acquire an engineering workshop in Cologne, Germany and the CMT (coal and mineral technology) business of KHD Humboldt Wedag International GmbH.
Deepak Khaitan, chairman, MBE said, the term-sheet had just been signed and the cost of acquisition would be arrived at after the due diligence.
“The acquisition will give us a footprint in Germany, India, South Africa, Russia and China. The turnover of the business is $50 million,” said Khaitan.
According to Khaitan, Humboldt has a turnover of $700 million of which India accounts for 30-40 per cent.
The engineering workshop is under the parent company, KHD Humboldt Wedag International but would be transferred to CMT.
Humboldt Wedag happens is one of the leading players in supplying proprietary technologies, equipment and engineering/design service for cement, coal and minerals processing.
Khaitan said, McNally had set a target of turnover of Rs 5,000 crore by 2015, but with the acquisition it would be achieved sooner. At present, McNally’s turnover is Rs 1,100 crore.
Humboldt Wedag Coal & Minerals Technology is one of the leading machine suppliers to the coal and mineral processing industry.
With the acquisition MBE would increase its presence in the coal and mineral processing space, having a global presence.
Last year, MBE acquired Sayaji Iron and Engineering Co. McNally Sayaji has an existing facility in Gujarat and had decided on setting up another plant.
The land requirement for the new Gujarat plant was around 25 acres, making it the largest among McNally’s manufacturing facilities.
The other manufacturing facilities in the McNally portfolio were at Kumardhubi in Jharkhand, Asansol in West Bengal and Bangalore in Karnataka.
Meanwhile McNally Bharat Engineering Company and McNally Sayaji Engineering were going through a scheme of arrangement. According to the arrangement, the product division of McNally Bharat would be transferred to McNally Sayaji. The rest of the business of McNally Bharat Engineering would continue in the parent company.
The MBE stock closed at Rs 64 on the Bombay Stock Exchange, up by 2.73 per cent.
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