The Hindu Business Line : KONE arm to merge with Bharat Bijlee elevator biz

Bharat Bijlee is demerging its elevator division, which manufactures Olympus brand of elevators. This business is to be integrated with KONE Elevators's subsidiary called Tiger Elevators India Ltd.

Chennai , June 4

A subsidiary of KONE Elevators India Pvt Ltd and the elevator business of Bharat Bijlee, a public limited company, will be integrated, according to a press release from KONE Elevators.

According to KONE Elevators's officials, Bharat Bijlee is demerging its elevator division, which manufactures Olympus brand of elevators. This business is to be integrated with KONE Elevators's subsidiary called Tiger Elevators India Ltd.

Once the statutory approvals are completed, this subsidiary will be called Olympus Elevators. The agreement provides for KONE Elevators to cater to Bharat Bijlee's orders and its facilities will supply the required materials and spares. The business and the brand are now with KONE, they said.

According to the scheme of arrangement, all the specified assets and liabilities of Bharat Bijlee's lift field operations business would be transferred to Tiger Elevators for a consideration of 3.34 crore redeemable preference shares of Rs 10 and 1,910 Bonds `A' of Rs 50,000 each and 955 Bonds `B' of Rs 50,000 each to be issued by Tiger Elevators.

The integration of the business gives KONE a strong national presence. Though KONE is widely present, Olympus has a strong market in the West and the East. KONE is a Rs 130-crore company, which expects to grow to Rs 160 crore in the current year. The integration with Olympus will make it a Rs 200-crore company in the first full year of business after the formal approvals are completed, officials said.

KONE Elevators is a wholly-owned subsidiary of KONE Corporation, a 5.3-billion euro company, and one of the largest players globally in elevator and escalator business.

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