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The Ahmedabad-based air-conditioner (AC) maker Symphony Limited has acquired a Chinese air cooler company Munters Keruilai Air Treatment Equipment (Guangdong) Co Ltd (MKE) for a proposed price of RMB 1.5 million (equivalent to approximately Rs 1.55 crore). The acquisition will facilitate Symphony’s access into China (one of the largest air cooler markets in the world after India) as well as enhance its exports business in ASEAN region. The acquisition will help Symphony increase exports of its air coolers, especially to ASEAN markets via China which has free trade agreements (FTAs) in these markets, said Achal Bakeri, chairman and managing director, Symphony Limited.
In addition, MKE will provide Symphony a sourcing advantage. Symphony sources a number of components from China for its products. With MKE’s knowledge of local sources, Symphony will enjoy the twin benefits of lower cost and enhanced quality.
Bakeri added, “With this synergistic acquisition we are confident that this will help us in expanding into new markets and geographies similar to our acquisition of IMPCO. We are possibly the only company from India which is selling its product under its own brand name of Symphony in 60 countries. We plan to further expand our reach and significantly increase our sales in the countries where we are already present.”
A market leading brand in China, MKE produces energy-saving and environment-friendly evaporative air coolers under brand Keruilai. The Chinese firm was set up in 2011 as a joint venture merger between Dongguan Keda Electrical and Mechanical Equipment Co Ltd (KEDA) and a Swedish company Munters AB (Munters). MKE has a manufacturing facility and test center (the only facility of its kind in Asia having built with US and Australian quality standards) at Dongguan, Guangdong (China).
Through the acquisition, Symphony Limited is also looking to enhance its capacity utilisation which stands at one million units per annum as against the total capacity of close to three million units.
