City-based air cooler major Symphony Ltd on Thursday announced the acquisition of China's leading air cooler player Munters Keruilai Air Treatment Equipment (Guangdong) Co Ltd (MKE) thereby marking its foray into the new geographies of China, ASEAN region and Latin America.

Symphony has signed an equity transfer agreement with the shareholders of MKE to acquire 100 per cent of the equity share capital of MKE. The company makes energy-saving and environment-friendly evaporative air coolers under the brand name of Keruilai.

The acquisition further establishes Symphony's prominance in the air cooler segment across the world.

Speaking to BusinessLine on the acquisition, Achal Bakeri, Chairman & MD, Symphony Ltd, said, "This acquisition will give us access to completely new and some of the world's biggest markets for air coolers. The product range that MKE has will complement Symphony's product line and we expect to continue our historical growth path in our exports. MKE exports to Latin America, where we never exported. Also, China has free trade agreements with most ASEAN countries, this will further boost our international market access."

Symphony's 25-30 per cent of the turnover comes from international market as it covers Mexico, Europe, United States, West Asia and South-East Asia.

For Symphony, there is an advantage of premium products of commercial air coolers in addition to household air coolers. MKE's Test Center is in accordance with US and Australian quality standards making it the only facility of its kind in Asia. There is also brand recognition as Keruilai becomes the only Chinese air cooler brand enjoying international recognition.

With additional 32,850 sq. m. of leased facility in Dongguan city, Wanjiang district, Guangdong Province in Southern China will have a stronger manufacturing base in Asia.

Further, MKE enjoys an asset-light business model with no debt or significant contingent liability. The Swedish owners have introduced sound corporate governance, systems, processes and practices. "We are a debt-free company and this entire transaction was completed at a very attractive price of Rs 1.5 crore," said Bakeri.

MKE, which came into existence in 2011 as a joint venture merger between Dongguan Keda Electrical and Mechanical Equipment Co. Ltd (KEDA) and a Swedish company Munters AB (Munters) has robust R & D facility with more than 80 intellectual property rights (including 51 patents) with a large three-year innovation in pipeline, providing Symphony robust future prospects.

Symphony shares jumped 12.46 per cent on NSE to close at Rs 2080 on Thursday.

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