Ahmedabad: The Vadodara-based INOX India Ltd, India’s largest cryogenic engineering company, has acquired majority interest for an undisclosed financial consideration in Cryogenic Vessel Alternatives (CVA), the world’s largest manufacturer of cryogenic transportation equipment.
Together, the entity would become the second largest company, offering cryogenic storage, transportation and distribution products for the global market, a company official said today.
“We have acquired controlling stake (more than 51 per cent) in CVA on December 21, 2009, and would consolidate their balance-sheets. Our headquarters would continue to be in Vadodara but our operations will now span India, the US, China, Turkey and Canada. Besides, we are also looking at Europe on whether we can acquire a company there too next year,” Mr Parag Kulkarni, Director and CEO, INOX India, told Business Line.
INOX India has funded acquisition of the US-based company, whose revenues were around $60 million (Rs 270 crore) last year, from internal accruals, he said. About 60 per cent of INOX India’s revenues, totalling Rs 240.90 crore in 2008-09, comes from exports.
INOX India would also be evaluating any further investments in terms of synergising the two companies’ functioning by setting up new plants.
Role for CVA owners
Mr Chris Carr, Mr Hector Villarreal and Mr Dean Corbin, erstwhile owners of CVA, will continue to play leadership roles, leverage the significant geographical market and product synergies resulting from this new partnership.
INOX India is a leading global player with product offerings spanning the entire cryogenic value chain including storage, transportation and distribution. Its market presence extends across nearly 100 countries and its product range is used in various industries such as industrial gases, LNG distribution, CryoBio medical and scientific research in space, nuclear and superconductivity technologies.
CVA has manufacturing and repair facilities for cryogenic transportation equipment at Mont Belvieu, Texas, US, with presence across Canada, China and Turkey.
While INOX India leads the market in stationary storage tanks, CVA specialises in large cryogenic transport tanks and mobile oil and gas field pumping units. This complementary market leadership, know-how and product range between the two companies will strengthen their current positions around the world, Mr Kulkarni said.
Both INOX India and CVA will continue to offer their customers products and services, while enhancing their current product offerings globally. The synergies of both these companies and the reinforced expertise will create a technical knowledge pool and provide a platform for sustainable growth, he added.
Established in 1992, INOX India Ltd is part of the INOX Group, with revenues of Rs 2,014.47 crore in 2008-09 and which has interest in diverse businesses including industrial gases, refrigerant gases, fluoro-chemicals, renewable energy, and entertainment. It is also one of the five top manufacturers of disposable refrigerant gas cylinders globally. Its three manufacturing in India are located at Kalol and Kandla, both in Gujarat, and Silvassa, capital of Dadra and Nagar Haveli.
One of INOX Group companies, INOX Leisure Ltd, is listed on the BSE where its share price closed at Rs 63.80 on the BSE on Tuesday.
Source : The Hindu Business Line 30/12/09