Pennar Industries, on Monday, announced the acquisition of assets of Wayne-Burt Petro Chemicals (earlier known as Bailey Hydropower), a hydraulics cylinder manufacturing company in Chennai.
Suhas Baxi, President and CEO of Pennar, told this correspondent that the cost of acquisition was Rs. 15 crore, and the assets included plant and machinery, product development programme and existing customer relations. He said Pennar would invest another Rs. 15 crore, adding to the capacity and technology.
The facility in Chennai has a capacity to produce 2.25 lakh cylinders annually. The hydraulics business would contribute over Rs. 300 crore to the turnover of Pennar Industries over a period of five years, Mr. Baxi said.
Since Bailey Hydro products already have a market in North America, the acquisition would allow Pennar to have a footprint in global market.
On the performance of Pennar Industries, Mr. Baxi said the company was doing well with a sound balance sheet.