(February 20, 2011)
Pierburg India Pvt Ltd has acquired Kirloskar Oil Engines Ltd’s bearings business division. Pierburg India Pvt Ltd is the Indian auto component manufacturing subsidiary of Germany based Rheinmetall. The investment is for a consideration of Rs. 87 crore. The bearing division has manufacturing units in Khadki, Pune and MIDC, Ahmednagar.
The investment will see Pierburg acquire the Kirloskar bearings division and all its assets, excluding the land and building. The division and all its assets have been acquired as a going concern on a cash free and debt free basis. In 2010, Kirloskar Oil Engines embarked on a restructuring strategy that demerged its engine and auto component business to Kirloskar Oil Engines Ltd, formerly Kirloskar Engines India Ltd.
The company's windmill business, investments, assets and liabilities remained with Kirloskar Industries Limited. Pierburg India manufactures exhaust gas recirculating valves and vacuum pumps at its plant in Pune. Its customers include BMW, GM, Volkswagen, Renault and Mahindra.
In October last year, Kirloskar Brothers Ltd announced its plans to set up new manufacturing units at Coimbatore and Ahmedabad for the production of Mini & DCM Pumps and Submersible Pumps, respectively. The production at the respective units was expected to commence in the last quarter of the year or early next year. The move was aimed to help the Company cater to the market potentials for these products.
Kirloskar Oil Engines Limited manufactures diesel engines and auto components in India. Its products include diesel engines, irrigation pumpsets, diesel generating sets, engine bearings, engine valves, and bimetal strips. The company’s engines are used in agricultural machinery, construction and material handling machinery, marine applications, and equipment used by armed forces. Its engine bearings and engine valves are used in automobiles and other engines.
Pierburg offers high-technology solutions: on-demand controlled electric coolant pumps, DC-motor driven exhaust gas recirculation systems, divert-air valves, as well as the many different versions of drive modules.
Pierburg opened its wholly-owned subsidiary, Pierburg India Pvt Ltd, in Pune in 2007. The Indian subsidiary focuses on engineering applications, supplier quality assurance, purchasing and marketing. The Indian subsidiary as well focuses on global sourcing; supplying components from India for its manufacturing locations in Brazil, Mexico and Germany.
Rheinmetall AG is a German automotive and defense company involved in a variety of advanced metal-working and milling technologies, allowing it to provide special high-quality components for small arms in addition to heavy weapon production.
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