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Thursday, Nov 18, 2004

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Easun Reyrolle plans to buy switchgear unit from group co

Our Bureau

Chennai , Nov. 17

EASUN Reyrolle Ltd, which manufactures power system protection equipment, plans to acquire the switchgear division from Eswaran and Sons Engineers Ltd, a company belonging to the same group, for a consideration of Rs 5 crore.

In a communication to the NSE on Wednesday, Easun Reyrolle said its board of directors has approved a proposal to acquire the switchgear division from Eswaran and Sons Engineers. The money will be paid by way of cash, debt and issue of equity shares of Easun Reyrolle.

Currently, Eswaran and Sons Engineers Ltd holds about a 1 per cent stake in Easun Reyrolle, according to company officials. Easun Reyrolle is a joint venture between the Easun group and VA Tech Reyrolle of the UK. It has plants in Hosur and Bangalore, where it manufactures a range of power system protection equipment like protective relays, control and relay panels, sub-station integration and automation equipment, and electronic energy meters.

When contacted, Mr Hari Easwaran, Chairman, Easun Reyrolle, said that given Easun Reyrolle's product profile, the acquisition of the switchgear division would fit its basket well.

There would also be technological convergence. The switchgear plant is located in North Chennai.

At its peak, the switchgear division had a turnover of about Rs 14 crore, he said. Easun Reyrolle, which reported a net profit of Rs 75 lakh on net sales of Rs 17.08 crore in the first half of this financial year, plans to put up a plant spread over 45,000 square feet at Jigani near Bangalore.

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