Kilburn expands manufacturing capabilities with Strategic Acquisition

Kilburn, a leading industrial solutions provider, has announced the signing of a binding term sheet on July 12, 2024, for the acquisition of a prime Factory Unit located at Plot No. B/78/1, M.I.D.C, Anand Nagar, Additional Ambernath Industrial Area, Ambernath (East) - 421 506, Thane, Maharashtra. This acquisition, from M/s. Shree Satyanarayan Industrial Suppliers Private Limited, includes essential assets such as Plant, Machinery, Office Building, Work Area/Shed, Amenities, and Equipment(s), for a total consideration not exceeding Rs. 22 crores, subject to due diligence and necessary adjustments.

The strategic move marks a significant milestone in Kilburn's growth trajectory, reinforcing its commitment to expanding manufacturing capabilities and enhancing operational efficiencies. The proximity of the acquired unit to Kilburn's existing operations is expected to yield synergistic benefits, optimizing production processes.

Ranjit Lala, Managing Director of Kilburn, expressed enthusiasm about the acquisition, stating, "This strategic acquisition aligns perfectly with Kilburn's vision of strengthening our manufacturing footprint. It not only enhances our capacity but also positions us favourably to meet growing market demands swiftly and efficiently."

Amritanshu Khaitan, Director of Kilburn, commented on the strategic implications of the acquisition, saying, "Acquiring this factory unit underscores our commitment to operational excellence and growth. The investment will have a very quick payback of 12-18 months and will facilitate the execution of our strong enquiry pipeline of orders. It enables us to integrate new capabilities effectively, driving sustained value creation for our stakeholders."

By projecting an anticipated additional revenue of approximately Rs. 100 crores postacquisition, Kilburn aims to achieve a rapid return on investment, highlighting the financial prudence of the decision and reinforcing its position as a dynamic player in the industrial solutions sector.

Shares of KILBURN ENGINEERING LTD. was last trading in BSE at Rs. 434.50 as compared to the previous close of Rs. 439.45. The total number of shares traded during the day was 48595 in over 671 trades.

The stock hit an intraday high of Rs. 448.00 and intraday low of 432.00. The net turnover during the day was Rs. 21334413.00.

Source : Equity Bulls

Keywords

KILBURNENGINEERING INE338F01015 Acquisition IndustrialUnit