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.

In June, 2008, it acquired air conditioner manufacturer Universal Comfort Products Pvt Ltd, which it integrated with itself as as a wholly owned subsidiary. Prior to that in December 2007, it took a 51-per cent shareholding in Saudi Arabia's Ensas Company Ltd (SECL), which is engaged in the execution, operations and maintenance of electro-mechanical installations.

Over the years, Voltas has expanded its portfolio from the air conditioning and refrigeration segment to heating and ventilating systems, and is now focusing on building management systems, public health engineering, process refrigeration, power management, indoor air quality, fire safety, and a host of others, both in India and the Middle East and South East Asian through joint ventures.

It is currently focusing on the turnkey electro mechanical solutions segment, in which it has had a revenue growth of 24 per cent in the quarter ended June compared to the same quarter in 2007.

Electro mechanical solutions include heating, ventilation and air conditioning (HVAC), electrical and power management, plumbing, fire-fighting and security, integrated building management systems (IBMS), indoor air quality and other specific applications. Voltas has a strong track record in electro-mechanical (EM) projects in the overseas markets in the Middle East and in South East Asia and during the last two years, brought in the concept of turnkey EM solutions to India as well.

For the quarter ended June 2008 Voltas's total income from operations rose by 22 per cent Rs1,035 crore ($258.89  million) in the corresponding quarter last year to Rs833 crore ($208.34million), while consolidated net profits recorded a growth of 63 per cent Rs85.13 crore during the first quarter compared to Rs52.16 crore in the same period the previous year.