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Kirloskars buy stake in U.K. firm

By Our Special Correspondent

CHENNAI NOV. 8. In a significant move, the Rs. 2400-crore Kirloskar group has bought the assets and businesses of pound sterling 27 million SPP Pumps Ltd., a U.K.-based company selling pumping packages across different market segments, under its ambit by acquiring 97.5 per cent controlling stake in the British venture. SPP Pumps is a part of Thyssen Bornemiscza Group in the U.K.

The acquisition is done through the nearly Rs. 500-crore turnover Kirloskar Brothers (KBL), engaged in the business of providing fluid handling solutions.

The acquisition cost is estimated at pound sterling 7 million. Bank of India and Exim Bank have reportedly funded the acquisition.

In fact, KBL has nearly a three-decade association with SPP for supplying components required for pump making. Sometime in 1973, SPP penned a pact with KBL for supply of castings and components for producing SPP designed pumps.

In the `80s, both worked on joint development of a new range of split casing pumps for the world markets. The capacity of the Kirolskarvadi plant was beefed up to make these pumps. These are now hawked to market across the globe like the U.S., Southeast Asia and Europe.

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