Kirloskar Electric acquires German firm LDW

Bangalore-based Rs 765-crore Kirloskar Electric Company (KEC), a manufacturer of electrical equipment, has acquired Germany's Lloyd Dynamowerke (LDW) for an undisclosed sum.

LDW, a former member of Germany's AEG, manufactures electrical rotating machines and drive systems. Its clientele includes Siemens, Alsthom, Thyssen Krupp and Gottwald.

For the year ended December 31, 2007, LDW's revenues were $78 million (about Rs 312 crore).

It is a profitable entity with positive operating cash flows and growth trends, a company press release said.

In 2006, German private equity company CMP Fonds had acquired the majority ownership of LDW and provided additional capital to the manufacturer of motors, generators and drive systems.

 

"This acquisition is of strategic interest to us. It will give Kirloskar Electric complementary engineering skills, a unique footprint in Europe and an important customer base built over the last few decades," said Vijay Kirloskar, chairman and managing director of KEC.

KEC has factories at Bangalore, Mysore, Hubli, and Tumkur in Karnataka and Pune in Maharashtra. The company has over 30 sales offices in India and offices in Singapore, Malaysia and the UAE.

"KEC will benefit from LDW's technology and ongoing research work with German universities. KEC will be able to sell LDW products under the AEG brand name in the Indian subcontinent and ASEAN countries and address the market for high voltage electrical machines over 50 Megawatts," Kirloskar said.

P S Malik, joint MD of KEC said, "Utilizing the firm’s existing widespread market reach Kirloskar Electric would distribute LDW products in India and South East Asia and would leverage on LDW's presence in Europe to sell its products.