Pennar Industries Ltd has acquired the assets of Wayne-Burt PetroChemicals Private Ltd, earlier known as Bailey Hydropower, a hydraulics cylinder manufacturing company based in Chennai.
Suhas Baxi, President and CEO of Pennar, said, “This deal is a step towards creating a more diversified product and solutions portfolio. The Indian market of hydraulic systems caters to domestic as well as global supply chain for construction and mining equipment, aerospace, defence, and agricultural equipment. Bailey Hydro products already have a market in North America and allow Pennar to have a footprint in the global market.”
“We intend to invest in technology, manufacturing and market development to emerge as one of the top three players in the hydraulic systems business in India,” he said.
Pennar Industries has acquired production, engineering, product development programme and existing customer relations of Wayne-Burt. The production facility in Chennai is able to produce 2,25,000 cylinders per annum. Currently, the hydraulic equipment market in India is estimated to be approximately Rs 2,900 crore and is expected to grow to Rs 4,000 crore over the next five years.
Aditya Rao, Vice-Chairman of Pennar Industries, said that the opportunity for the company is to create a presence across the value chain of Hydraulic Equipment starting with engineering services, going all the way to system integration.
T.G.S. Mahesh, Founder and CEO of the Wayne Burt Group, said, “The hydraulic cylinder sector is an attractive segment for players such as Pennar who are present in the value chain and in a position to derive additional value. Our group has recently forayed into the defence, aerospace, oil & gas, and petrochemical industries and made substantial investments in these sectors.”
Merisis Advisors, an M&A focused investment banking advisory firm, were the exclusive advisors to the transaction.
The Hyderabad-based Pennar Group is into value-added steel products, pre-fabricated building materials, water treatment and some other sectors. This acquisition adds to the company business streams.
The Wayne-Burt Group is a $2 billion asset-based conglomerate comprising a group of companies with interests in engineering, aerospace, oil & gas, petrochemicals and energy businesses with a strong presence in India and US.
rishikumar.vundi@thehindu.co.in