Saint Gobain to buy iron pipes business from Electrotherm (India) for Rs950 crore

15 Dec 2011

1

French building materials maker Saint Gobain will acquire Electrotherm (India) Ltd's ductile iron pipes business for Rs950 crore ($176.9 million), in a bid to strengthen its global pipes business.

In a filing with the Bombay Stock Exchange, Electrotherm said, "Electrotherm had today executed binding agreement pursuant to which Saint-Gobain Pour La Construction SAS will acquire Electrotherm's Ductile iron pipes business for Rs 950 plus the value of working capital at closing.''

"The transaction will enable Electrotherm to focus on its core businesses of engineering and steel and also reduce debt," Avinash Bhandari, joint managing director of Electrotherm, said in a statement.

With 715 employees, Electrotherm's pipe division had 2010 sales of Rs549 crore. It has two production sites in Gujarat and Karnataka.
Saint Gobain said that the acquisition will strengthen its global pipe business.

With a turnover of Rs2,300 crore, Gandhinagar, Gujarat-based Electrotherm is India's largest manufacturer of induction melting furnace and refining equipment. It has also diversified into steel manufacturing, electric vehicles business and renewable energy.

It makes the popular YObyke electric scooters and is setting up wind farms and solar power plants and is also planning to introduce electric three-wheelers and hybrid buses.

Founded in 1665 under the direction of French minister of finance Jean-Baptiste Colbert during  the reign of King Louis XIV, Paris-based Saint-Gobain today is the world's largest construction, building materials and glass company. Located in 64 countries and with 2010 revenues of €40.12 billion, Saint-Gobain is a world leader in habitat, designs, manufactures and distributes building materials. It is also the world's largest manufacturer of high performance plastics.

Latest articles

Senior bankers in PSBs are in firing line: AIBEA

IIT Madras – ISRO to set up Centre of Excellence for research in Fluid and Thermal Sciences

IIT Madras – ISRO to set up Centre of Excellence for research in Fluid and Thermal Sciences

LPG as automobile fuel a solution for Delhi NCR air pollution: IAC

LPG as automobile fuel a solution for Delhi NCR air pollution: IAC

Entry of Starlink and Kuiper could churn India’s telecom sector

Entry of Starlink and Kuiper could churn India’s telecom sector

India building Rs820-cr railway test track in Rajasthan

India building Rs820-cr railway test track in Rajasthan

Rupee falls to 84.37 a dollar as foreign funds withdraw over $2.37 bn from Indian stocks in five days

Rupee falls to 84.37 a dollar as foreign funds withdraw over $2.37 bn from Indian stocks in five days

New central scheme to facilitate guarantee-free loans for higher education

New central scheme to facilitate guarantee-free loans for higher education

Canada ends Student Direct Stream channel for student visas

Canada ends Student Direct Stream channel for student visas

Supreme Court orders liquidation of Jet Airways as debt resolution fails

Supreme Court orders liquidation of Jet Airways as debt resolution fails

Business History Videos

History of hovercraft Part 3 | Industry study | Business History

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2 | Industry study | Business History

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1 | Industry study | Business History

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | Industry study | Business History

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more
View details about the software product Informachine News Trackers