Coimbatore-based LG Balakrishnan & Bros (LGB) Ltd, a motorcycle chains manufacturer, today informed Bombay Stock Exchange (BSE) that the company has entered into an agreement with the promoters, directors of Coimbatore-based M M Gears Pvt Ltd, a company engaged in the manufacture of Gears & Gear boxes, for acquisition of 100 per cent shares of the company and subject to satisfactory due diligence.
When contacted LG Balakrishnan company officials declined to reveal the acquisition cost and said company's board which is scheduled to meet on July 31, 2009 will decide the acquisition cost.
M M Gears officials also declined to comment on the acquisition cost. They added last year company's turn over was around Rs 12 crore and set a target of Rs 15 crore for the current fiscal.
Established in 1995, the company manufactures high quality, robust and efficient Gears and Gearboxes, Worm Gearboxes, Helical Gearboxes, Geared Motors and Non-Standard Gearboxes.
Number of gear box produced is little over 3000 and increase the numbers by investing around Rs six crore on building and machinery, according to M M Gears official. The company has a built-up area of 30,000 Sq ft for its manufacturing activities in the coming years it is planning to increase it to 50,000 sq ft with ultra modern facilities.
