Crompton Greaves buys Sweden's Emotron for Rs 370 cr

Electrical equipment maker Crompton Greaves (CG) today said it has acquired Sweden-based Emotron Group for 57.8 million euro (about Rs 370 crore).

"With this acquisition, the company achieved its ambition of becoming a global player capable of providing comprehensive solutions in its industrial systems business," Crompton Greaves said in a statement.

The enterprise value of this acquisition is equivalent to 57.8 million euros, it said.

Emotron, which is a power electronics and engineering company, is engaged in manufacturing of various equipments, including variable frequency drives (VFDs).

"The rising energy costs, global focus on energy efficiency, low carbon emissions coupled with global legislations for energy efficiency is expected to catapult the global market for VFDs from USD 10 billion in 2010 to USD 16 billion till 2014," it said.

CG already has its operations based in Europe and offers variety of motors and generators for industrial markets.

"With this combination, both companies are expected to substantially gain and become a major force to reckon with in the global VFD/industrial motors market," it added.

The acquisition would also enable the firm to offer the latest technology in India. The present market for VFD's in the country is estimated to be USD 375 million.

This is the eighth acquisition in a span of six years by the company, including MSE Power Systems in 2008 and Power Technology Solutions in 2010.

Shares of Crompton Greaves today closed at Rs 238.45 on the BSE, up O.65 per cent from its previous close.