Abb Picks Up Majority Stake In Lenzohm

Swiss major Asea Brown Boveri Ltd (ABB) has picked up a 51 per cent stake in Mumbai-based engineering servicing firm Lenzohm Electrical Company Pvt Ltd. Lenzohm Electrical will now be rechristened ABB Lenzhom Service Ltd, ABB sources told Business Standard.

The move by ABB is aimed at strengthening its service presence in the country.

The multinational is expected acquire stakes in some other similar units.

ABB sources refused to spell out the amount paid for the stake in Lenzohm. Market sources, however, said the deal was brokered through HSBC Investment Banking and the acquisition cost was Rs 10 crore.

A 40-year-old company, Lenzohm is a leading player in the repairing and maintenance of large motors, generators, alternators and transformers for cement plants, refineries, fertiliser plants and steel plants, ABB sources said. The company, which has strengths in both in-house as well as on-site repair jobs, has a turnover of Rs 3 crore.

 

The current managing director, Cajetan Pinto, will retain his post in the company .ABB, which has a large service business globally, is looking at increasing its service support to customers in India.

ABB in India has a turnover of Rs 1,185 crore and a pre-tax profit of Rs 122.8 crore.

The company has a major presence in the area of power generation, transmission and distribution and in industrial and building systems.

Internationally, ABB has a group turnover of $34 billion and a pre-tax profit of $2 billion.