Biznextindia : Kirloskar Oil Engines has acquired balance 24% equity shares of La‐Gajjar Machineries Private Limited (LGM) for Rs.109 crore.
Consequent to the aforesaid acquisition, the Company is holding 100% equity shares of LGM and LGM has become a Wholly Owned Subsidiary of the Company, instead of Subsidiary Company.
LGM was incorporated in 1981 and was the first Company to launch oil filled motors in India. It is engaged in the business of Submersible Pumpset, monoblock pumps and Stainless steel pumps. KOEL has acquired 76% equity stake in LGM in the year 2017 by which LGM has become a subsidiary of KOEL. On 26th September 2022, KOEL has acquired balance 24% equity stake in LGM, post the said acquisition, LGM has become a Wholly Owned Subsidiary of KOEL.
The acquisition of balance shares of LGM provides KOEL an opportunity to consolidate its shareholding in the company with a strong and established footprint into the electric pump market through its ‘Varuna’ and ‘Raindrop’ brand of submersible and monoblock pumps which enables further consolidation of KOEL’s strong position in the pump segment.