Swiss co buyout propels Crompton Greaves by over 3%
Shares of heavy electrical equipment manufacturer Crompton Greaves surged 3.8% to 248.75 on news that the company has acquired Sweden-based Emotron Group for 57 million euros.
By ET Bureau | Updated:
Shares of heavy electrical equipment manufacturer Crompton Greaves surged 3.8% to 248.75 on news that the company has acquired Sweden-based Emotron Group for 57 million euros.
The acquisition of Emotron, which makes electronic equipment including variable frequency drives (VFD), will enable Crompton Greaves to introduce latest VFD technology in India. Investors hope the acquisition will enable Crompton to tap into India's $375-million VFD market.
Analysts said such overseas buyouts will help the company offset the sluggishness in the local transmission and distribution market. Analysts said many of the capital goods companies have increased capacity, but do not have the necessary order book flows to utilise this.
Contributed by Sangita Mehta and Shailesh Menon
The acquisition of Emotron, which makes electronic equipment including variable frequency drives (VFD), will enable Crompton Greaves to introduce latest VFD technology in India. Investors hope the acquisition will enable Crompton to tap into India's $375-million VFD market.
Analysts said such overseas buyouts will help the company offset the sluggishness in the local transmission and distribution market. Analysts said many of the capital goods companies have increased capacity, but do not have the necessary order book flows to utilise this.
Contributed by Sangita Mehta and Shailesh Menon
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