In what could give it access to ASEAN markets for enhanced exports, Ahmedabad-based Symphony Limited has acquired a Chinese air cooler company. The company signed an equity transfer agreement (ETA) with shareholders of Munters Keruilai Air Treatment Equipment (Guangdong) Co. Ltd. (MKE), China, to acquire 100% of the equity share capital of MKE. ALSO READ: Symphony turns volatile post June quarter results ALSO READ: Gujarat HC restrains Wim Plast from launching Symphony look-alike air coolers
The acquisition will help Symphony increase exports of its air coolers, especially to ASEAN markets via China which has FTAs in these markets, said Achal Bakeri, Chairman and Managing Director, Symphony Limited.
"With this synergistic acquisition we are confident that this will help us in expanding into new markets and geographies similar to our acquisition of IMPCO. We are possibly the only company from India which is selling its product under its own brand name of Symphony in 60 countries. We plan to further expand our reach and significantly increase our sales in the countries where we are already present," Bakeri said.
A market leading brand in China, MKE produces energy-saving and environment-friendly evaporative air coolers under brand Keruilai.
The Chinese firm was set up in 2011 as a joint venture merger between Dongguan Keda Electrical and Mechanical Equipment Co. Ltd (KEDA) and a Swedish company Munters AB ('Munters').
Through the acquisition, Symphony Limited is also looking to enhance its capacity utilisation which stands at one million units per annum as against the total capacity of close to three million units.
Symphony also reported a 10 per cent rise in its consolidated net profit at Rs 115.91 crore for the financial year ended on June 30, 2015, as against Rs 105.72 crore in the previous fiscal. Consolidated net sales increased to Rs 578.49 crore for the financial year ended on June 30, 2015 as against Rs 532.42 crore in the previous year registering a nine per cent growth year-on-year.
Talking about the financial results, Bakeri said, "We are confident to continue robust performance as the potential is tremendous and Symphony is well poised to fully nurture the same. With continuous innovation, strong branding, robust distribution network and overall sharply focused approach towards the category, we are confident to maintain our growth story and pull off much better results in the times to come."
Meanwhile, Symphony recommended final dividend of Rs 10 per share (500 per cent on an equity share of face value of Rs 2 each). Further an interim dividend of Rs 4 per equity share was paid during the year.