Wednesday, June 20, 2007

Batliboi buys 70% in French firm for Rs90 mn

Engineering firm Batliboi Ltd today bought a majority stake in French firm AESA Air Engineering to gain access to technology and newer markets, sending its shares soaring.

Batliboi, paid Rs90 million for 70% in loss-making AESA, an Industrial airconditoning maker, chairman Nirmal Bhogilal told reporters.AESA, now 30% owned by employees, is expected to break even in 2007 on revenue of Rs1billion, up from Rs700 million a year ago, he said.

Batliboi’s shares extended gains to touch a high of Rs118.40 on the news. The shares ended 7.1% up at Rs116 in a firm Mumbai market.“There were only two big Western firms left in this space and we needed a global footprint,” Bhogilal said. “AESA gives us the brand and the network.” Batliboi makes machine tools, industrial airconditions and sells textile machinery.

Read more in The Livemint article.

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