Voltas acquires majority stake in projects contractor Rohini Industrial Electricals

13 August 2008

Voltas Ltd, air conditioning and engineering service provider of the Tatas Group, has entered into a definitive agreement to acquire majority stake in Mumbai-based turnkey electrical and instrumentation projects contractor Rohini Industrial Electricals.

Under the deal, Voltas will  pay Rs62 crore for a 51-per cent stake, which it will later increase to 100 per cent.

Voltas said on completion of the proposed transaction, Rohini would become its subsidiary and that there would be no change in its management team. Rohini Industries will continue to be led by Prashant Kandoi, managing director and Gopal Kandoi, executive director.

Rohini is a 25-year old electricals and instrumentation contracting operationsthat undertakes large-scale industrial and commercial installations in various sectors including high tension and low tension power transmission.

Rohini has completed over 500 projects over the past two decades across India and reported a turnover of Rs120 crore last fiscal.

In the past the contracting firm has undertaken jobs for Ashok Leyland, Bharat Forge, J K Cement, Siemens Ltd, Sterlite Optical Technologies and Jindal Steel among others.

This acquisition is in line with Voltas's plans to expand its operations through the acquisition of mid-sized companies in the electro-mechanical segment. Voltas executive vice president and CFO, M M Miyajiwala had earlier said, ''We will continue to look for acquisition opportunities in the electro-mechanical segment which is a core thrust area for us.''

The company is looking for both domestic and oversees acquisitions. ''We are not looking at large acquisitions. We are interested in mid-sized opportunities,'' he added.