Crompton Greaves Ltd (CG), the flagship company of the $4 billion Avantha Group, has entered into a definitive agreement with Himachal Pradesh-based Karma Industries to acquire the latter’s compact fluorescent lamp (CFL) manufacturing business. The terms and value of the deal, however, were not disclosed. The acquisition would double CG’s capacity in the fast-growing CFL segment. Post-acquisition, this unit would be integrated with the consumer business unit of CG, the company said. The unit, located in Baddi, Himachal Pradesh, is dedicated to manufacturing CFL products.

“This acquisition reinforces our presence in the rapidly growing Indian consumer market. The state-of-the-art facility can manufacture two million lamps per month, not only providing us with immediate capacities but also allowing us to offer a complete range of CFL lamps,” said Laurent Demortier, Chief Executive Officer & Managing Director, CG.

“I am pleased to acquire an advanced manufacturing set-up employing 51 people. Spread across 4,500 sq m, the facility will enable us to better serve our customers and channel partners with high quality products,” Ash Gupta, President Consumer Business, CG said. Soon after the announcement of the deal, shares of CG surged and closed with a gain of 3.66 per cent at Rs. 120.35 on the Bombay Stock Exchange (BSE).

Karma Industries stock which is a penny stock also gained 4.88 per cent to close at Rs. 4.73 on the BSE. Meanwhile, CG signed a memorandum of understanding with the Gujarat government to set up a power transformer manufacturing unit in the state to produce power transformers and reactors upto 1200KV for domestic and international markets.

More In: Companies | Business