Kirloskar Pneumatic Strengthens Industrial Refrigeration Presence Via Acquisition

Kirloskar Pneumatic Company Ltd. (KPCL), a leading manufacturer of air, refrigeration, and gas compressors, announced a strategic move today by signing a memorandum of understanding (MoU) to acquire a majority stake (over 51%) in M/s. Systems & Components India Private Ltd (S&C).

Expanding into Industrial Refrigeration

This acquisition marks a significant step for KPCL as it ventures into the industrial refrigeration sector. S&C boasts a distinguished track record spanning over 30 years in this industry. With more than 700 installations across India, the company caters to diverse segments, including dairy, pharmaceuticals, chemicals, and fertilisers. Their strategically located manufacturing plant in Village Patgaon, near Murbad, Maharashtra, further strengthens the combined operational footprint.

Strategic Partnership and Continued Expertise

The agreement ensures the continued involvement of Mr. V. Sundararajan, the current promoter and technocrat of S&C. His invaluable expertise and industry knowledge will be instrumental in guiding the combined entity’s growth trajectory. Mr. Sundararajan’s ongoing presence fosters a smooth transition and ensures the retention of S&C’s established client base.

Synergistic Growth for KPCL

KPCL views this acquisition as a springboard for significant business expansion. By acquiring a majority stake in S&C, KPCL gains immediate access to a well-established industrial refrigeration customer base and strengthens its product portfolio. This strategic move positions KPCL to capitalise on synergies across its existing operations and S&C’s expertise, enabling the company to offer a more comprehensive suite of solutions to its clients.

Looking Ahead

The acquisition of S&C aligns perfectly with KPCL’s vision for growth and diversification. This strategic partnership broadens KPCL’s market reach and strengthens its position as a leading provider of compressed air, refrigeration, and gas compression solutions in India. With a combined focus on innovation and customer satisfaction, KPCL is poised for continued success in the years to come.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.