Indian Stock Market

Crompton Greaves buys Power Technology Solutions (PTS) for Rs.204 crore.

Here is the article from BS .

Crompton Greaves Ltd (CG), part of the Rs 18,000-crore Avantha Group, has acquired the UK-based electrical engineering company Power Technology Solutions (PTS) for around £30 million (Rs 204 crore).

With this acquisition, CG would gain significant consolidation in the engineering, procurement & maintenance (EPM) segment in the UK and get access to newer markets, said S M Trehan, managing director, Crompton Greaves. The acquisition was a step forward towards achieving revenues of $8 billion by 2015, he said.

Avantha’s Chairman and Chief Executive Officer, Gautam Thapar, said the strategic investment would contribute to the company’s product portfolio and overall growth plans. CG, claims Thapar, is one of the country’s most globalised companies, with half of its assets and more than 50 per cent of sales coming from abroad.

This is CG’s sixth acquisition in the last five years. It first acquired Pauwels, a Belgium-based power transformer maker, for Rs 180 crore and in 2006, it acquired Hungary-based Ganz, a leading manufacturer of extra high voltage transformers, gas insulated switchgear and other related components. In 2007, it acquired Ireland-based transmission and distribution company Microsol Holdings and other group companies for $14.1 million.

In 2008, CG acquired France-based Societe Nouvelle de Maintenance Transformateurs (Sonomatra), a service provider for on-site maintenance and repair of power transformers, on-load tap changers, oil analysis, oil treatment and retro-filling, for around ¤1.3 million. In the same year, Crompton Greaves acquired US-based MSE Power Systems and two of its group firms for $16 million (about Rs 72 crore).

PTS is a high voltage electrical engineering company which provides consultancy, technical and engineering support to regional electricity companies (RECs), including major utilities and distribution network operators (DNOs) in the UK market. The 10-year old PTS has customers such as the largest DNO’s in the UK market like UU, EDF Energy, Scottish Power, Central Networks and CE Electric. It also has a manufacturing facility to produce various electric panels, sources said.

M&A SPREE

# This is CG’s sixth acquisition in the last five years

# 2006: Pauwels, a Belgium-based power transformer maker, for Rs 180 crore

# 2007: Ireland-based transmission and distribution company Microsol Holdings and other group companies for $14.1 million

# 2008: CG acquired France-based Societe Nouvelle de Maintenance Transformateurs (Sonomatra), for around ¤1.3 million

# 2008: US-based MSE Power Systems and two of its group firms for $16 million (about Rs 72 crore).

Meanwhile, Avantha Power and Infrastructure, part of the Avantha Group, filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India to raise up to Rs 125 crore from an initial public offering.

The company has 191 Mw of operational thermal power capacity and has another 2,400 Mw of generating capacity under various stages of implementation. Besides, it has plans to set up another 1,320 Mw of generating capacity in the next phase, said sources.

Enam Securities Private Ltd, Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Private Ltd and Axis Bank Ltd are the book running lead managers to the issue.

ABB Namma Metro in Bangalore.

ABB wins Rs. 506 crore order to power Namma Metro in Bangalore.

Lanco Infratech bags Rs 67 Crore Order

Lanco Infratech received an order of Rs 67 crores from Central Power Distribution Company of Andhra Pradesh.

The scope of work include supplying and erecting 33/11 KV Substations and 33/11 KV Lines in the five districts of Mahabubnagar, Kurnool, Nalgonda, Medak and Ananthapur in the state of Andhra Pradesh.

Textile machinery maker Lakshmi Machine Works Ltd is facing a slowdown in order flow as mills hit by muted demand defer expansion, but expects orders to pick up in 2008/09, a senior official said on Thursday.

The company, which holds more than 60 per cent of the Indian spinning machinery market, has barely managed to replenish orders in the first half of FY08 and expects a 20 per cent fall in its order book this year, Chief Financial Officer R. Rajendran said.

The order book has stayed at Rs 5300 crore since March-end but indications are new orders will not match deliveries in the second half, thus reducing the order book size, Rajendran said.

Larsen & Toubro Ltd has announced that the Company in consortium with Paul Wurth has bagged a Rs 580.74 crore order from SAIL for Up gradation of Blast Furnace No 2 at Bokaro Steel Plant on a turnkey basis. ECC, the Company’s Construction Division will execute this order and the Company’s portion of this order its valued at Rs 355.02 crore.

Larsen & Toubro Ltd (L&T) has announced that L&T & Mitsubishi Heavy Industries Ltd (“MHI”) have inked a Joint Venture Agreement for setting up a manufacturing facility to supply super-critical Steam Turbine & Generator facility in India. This follows a Technology Licensing and Technical Assistance Agreement for manufacture of super-critical Turbine & Generator, signed between L&T MHI, and Mitsubishi Electric Corporation (Mitsubishi Electric). The product, an integral component of energy efficient coal based power plants, is expected to meet the demand / supply gap for power plant equipment as envisaged in the country’s plan for a mega ramp up in power generation capacity using super-critical technology.

The establishment of the Joint Venture (JV) represents further strengthening of already established relationship with MHI. The Company has already a JV with MHI for manufacture of Super Critical Boilers. L&T & Mitsubishi Group has been seeking a foothold in power generation core equipment sector to meet India’s rapidly growing power demand while L&T has been looking for an technology partner possessing state of art technologies and willing to invest and work together to serve Indian power demand.

The proposed manufacturing JV, with a capital outlay of around Rs 880 crore, will have a product configuration catering to plant capacities ranging between 500 MW to 1000 MW. The manufacturing operation expected to commence sometime during the later part of FY 2008-09.

Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one of the world’s leading heavy machinery manufacturers, with consolidated sales of around USD 25 billion. MHI’s diverse lineup of products and services encompass shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and air-conditioning systems.

Mitsubishi Electric Corporation (Mitsubishi Electric), headquartered in Tokyo, Japan, is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. The Company recorded consolidated group sales of 3,855 billion yen (US$ 32.7billion*) in the fiscal year ended March 31, 2007.

*At an exchange rate of 118 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2007

Supercritical turbine uses higher steam temperatures and pressures than sub-critical pressure power generation, and are more fuel-efficient and environment friendly. Super Critical Technology Coal based Plants reduce coal consumption relative to power output, carbon dioxide (CO2) emissions can be reduced roughly by 2.5%. However, supercritical type generation requires more sophisticated technology in equipment design to withstand the high temperature and pressure levels, and machining of high-strength component materials is a complex task, MHI has vast experience with these systems, having already delivered approximately 70 units in Japan and abroad. Supercritical Turbines are engineered to operate at steam pressures above the critical point of water: 22.12MPa and 374.15°C (705.5°F/647.3K).

Jindal Drilling & Industries Ltd (JDIL), D.P. Jindal Group Company, is engaged in the Business of Offshore Oil & Gas Drilling Activities. JDIL is also present in the Horizontal and Directional Drilling Business Activity and is now increasing its presence in this emerging segment of oil & gas.

Recently, the Company has been awarded contract worth INR 130 crores for 3 years on firm basis for Charter Hire of Directional Drilling Equipments and services by ONGC Ltd. These equipments are likely to be operational by middle of January 2008.

With this total order book stands at INR 2630 crores & the financial impact of this contract would start accruing from the fourth quarter of current years itself.

Punj Lloyd Ltd has informed that that Sembawang Engineers and Constructors Pte Ltd, a wholly owned subsidiary of the Company has been awarded a major turnkey contract worth Rs 1770 crore for engineering, procurement and construction work at the new mega aromatics plant on Jurong Island, Singapore by Jurong Aromatics Corporation Pte Ltd.

In this regard the Company has issued the following press release:

“Punj Lloyd’s wholly owned subsidiary, Sembaweng Engineers and Constructors (Simbawang E&C), one of the largest engineering and construction comanies in Southeast Asia, been awarded a major turnkey contract worth US$ 450 million for enginee procuremint and construction work at the new mega aromatics plant on Jurong Island.

The contract was awarded by Jurong Aromatics Corporation Pte Ltd (JAC) which had recently announced plans to develop the world-scale US$ 2 billion JAG Complex that will produce energy and aromatic products to regional end-users as well as to global downstream producers and traders in the textile md plastics industries.

Under the terms of the contract, Sembawang E&C will be responsible for the engineering, procurement and construction of all the ancillary facilities, including the intermediary and finished product tenkage, receiving and exporting jetties, power and steam co-generation plant, waste water treatment unit as well as other utilities and infrastructure which are necessary to provide support to the main conversion units.

Work on the JAG Complex will start in 2008 and is slated for completion in 2011. Upon completion, the JAG acuity will have a capacity of around 1.5 million tonnes of aromatics, comprising 800,000 tonnes of para-xylene, 200,000 tonnes of ortho-xylene, and 450,000 tonnes of benzane, as well as about 2.5 million tonnes of petroleum products.

Mr. Alwyn Bowden, President and CEO, Sembawang E&C said, “We are delighted by this award and to be involved in the engineering and construction of this aromatics facility which will be one of the largest privately-owned petrochemical projects in Singapore and the region. Being selected for this project by an international consortium like JAC is testament to our expertise and capabilities in delivering world-class EPC work on sophisticated industrial plants and infrastructure projects.”

With this, the order backlog for the Punj Lloyd group on consolidated basis ha gone up to Rs 18,622 crore. This is the total value of unexecuted orders as of September 30, 2007 end new order, received till date.

Larsen & Toubro Ltd (L&T) has announced that as a crucial step forward in the modernization & expansion of Chhatraprati Shivaji International Airport (CSIA), Mumbai international Airport Pvt Ltd (MIAL), on November 01, 2007 awarded the EPC contract to L&T. According to the contract L&T has bean mandated to build the new integrated passenger terminal to modern and expand the existing facilities, which will also include the airside and landside works on a turnkey basis. The new terminal, catering to both domestic and international passengers, will double the passenger – handing capacity to 40 million passenger per annum.

While the a construction includes taxiways, aprons, aircraft maintenance facilities, utility services and other primary infrastructure support facilities, the landside primarily comprises of a new multi – storey car park and access roads leading up to the terminal.

L&T was chosen for the project after an elaborate evolution and competitive bidding process.

Speaking on the occasion, Mr. A M Naik, Chairman & MD, L&T said, “L&T is happy to be associated with GVK to create the largest airport hub in the business capital of India. This is a step towards creating world – class infrastructure and making India a stronger nation. As a company engaged in building infrastructure for India and meeting the needs of the core sector of economy. L&T’s focus has always been to undertake projects in critical infrastructure sectors like airports, ports, power and oil and gas.”

This Engineering, Construction and Procurement (EPC) contract effectively gives shape to the master plan unveiled earlier by MIAL that envisages the design & construction of a new integrated passenger terminal for the up graduation of CSIA.”

Sanghvi Movers Ltd has informed  that the Company has received New Orders aggregating to Rs 87.50 Crores for giving Cranes on Hire as follows:

1. Name of the Client : Suzlon Energy (Wind Power)
Value of Order : Rs 45.00 crores

2. Name of the Client : BHEL (Power Project)
Value of Order : Rs 24.00 crores

3. Name of the Client : Hajee A P Bawa (Cement Ind.)
Value of Order : Rs 11.25 crores

4. Name of the Client : Metro Tunneling Group(Delhi Metro)
Value of Order : Rs 5.25 crores

5. Name of the Client : Toyo Engineering (Refinery)
Value of Order : Rs 2.00 crores.

Bihar Tubes  has entered into an agreement with Japan`s Kusakabe Engineering Co, reports Economic Times.
The joint venture (JV) is to make stainless steel pipes and tubes.

The project cost will be USD 5 million and the joint venture would have a capacity of 12,000 tons per annum.
Bihar Tubes manufactures and exports steel pipes & tubes, aluminised steel tubes, black steel tubes, hot dipped & pre galvanised steel tubes, fence tubes, and structural steel. The company also trades in scaffolding fittings, mild steel angle/channel, pipe fittings, hand tools, garden tools and hand pumps

USD 5 billion Larsen & Toubro (L&T) inaugurated three new facilities at its growth centre at the Coimbatore Campus. The facilities included an engineering centre for electrical systems, a precision machining centre and a manufacturing unit for petroleum dispensing pumps.
R Mukhija, president operations said, “The precision machining centre and the engineering centre for electrical systems business are critical to the growth of L&T`s electrical business. These centers would significantly help in process improvements and better response time towards addressing the market`s current and future needs.“

He added, “We are witnessing big growth in fuel and gas industry and the dispensers manufacturing unit will cater to the oil and gas retail segment in India as well as Africa, GCC, Europe and south-east Asia.“

The new petroleum dispensing pumps manufacturing unit have capacity of 30,000 hoses per annum. The facility has been made immune to dust by Forced Draft Ventilation System (FDVS). The assembly lines designs are backed by e-KANBAN and tailored to achieve least through put time. The pumps will be auto-tested by CANBUS communicable stations with test data storage facility. There will be a state-of-the-art test station for petrol, diesel, and AutoLPG to simulate stringent field conditions.

L&T will manufacture AutoLPG pumps at this facility, and this will be another first to its credit in India. L&T fuel dispensing pumps are exported to Middle East, south-east Asia, parts of Europe and East Africa. The company is the domestic market leader with more than 40% share.

L&T significantly enhanced the capacity of precision machining centre as part of its engineered tooling solutions capability. The machining centre has been set up in close to 5000 sqm area that will go up to 11290 sqm in the next 5 years. It is a modern facility with precision machines and equipment aided by IT and computer systems to facilitate concurrent product development activity. The precision machining facility will produce high precision tool parts with accuracies in the range of 2-10 microns.

The objective of setting up this precision machining centre is to create additional capacity to cater to the growing needs of high precision and high quality tooling for L&T`s electrical and electronics business and precision machined components for heavy engineering business. The precision machining centre is intended to be developed as a business unit and has expanded into high precision specialty product on lines of becoming a preferred supplier to select companies with global presence.

The administration and engineering centre will cater to the requirements of electrical equipment and systems business on Coimbatore campus. This centre will meet the design and engineering needs of customers` demands as the switchboard manufacturing capacity has been enhanced from 7000 panels per year to 13,000 panels by 2009 and further to 17,000 panels by 2010.

This centre will facilitate integration of modern technology with manufacturing process and help L&T achieve global standards in every parameter – quality, speed, safety and efficiency. This will give switchboard`s facilities the flexibility for timely response to changing market requirements