Mumbai June 21

Engineering company Batliboi Ltd announced acquisition of 70 per cent stake in France-based air engineering company AESA, SA for approximately Rs 9 crore in an all-cash deal.

The balance 30 per cent stake will remain with AESA's key employees. There will be no changes in the management and employee structure of the French company.

Turning around

AESA suffered a loss of Rs 1 crore to Rs 2 crore last year due to its building mortgage debt, but Batliboi intends to turn the company around this year, said Mr Nirmal Bhogilal, Chairman and Managing Director of Batliboi.

Batliboi is into machine tools, textile air engineering, textile machinery, ACs and refrigeration, clocking a gross turnover of Rs 300 crore last year. Its main facilities are in Udhna, Bangalore and Peterborough with additional offices in Shanghai, Prague and Dhaka.

AESA is its second acquisition after Canadian Machine Tool Company Quickmill in March this year. Batliboi expects to gain indirect global market presence in new segments of industry-glass, paper, carbon fibres and tobacco in Europe, South America and Asia, particularly in Pakistan, through AESA's subsidiaries in Singapore, China and Italy.

AESA's turnover for the year ended December 2006 was Rs 70 crore and is expected to cross Rs 100 crore this year, said Mr Bhogilal. The company does not have any manufacturing units.

Taken from Business Line

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