Zamil buys Indian air conditioning businesson Jan 3, 2013
Zamil Industrial Investment Company has announced an overhaul of its business which has included the formation of a newsteel division and a company to handle air conditioning sales.
The company said that it has bought out the remaining 70% of Advantec Coils - an Indian manufacturer of air conditioning units with whom it has been in business for nearly five years.
It has also commissioned an in-depth study from an international consultancy firm ahead of the launch of Zamil Air Conditioners Holding Company, which is expected to be launched soon.
Zamil has paid around $1.85m (SR: 7m) to buy out the partners following the initial SR: 59m paid for the 30% stake in 2013.
The firm said its decision to buy the remaining stake was driven partly by "promising demand in the Indian subcontinent, which is one of the largest and fastest-growing economies".
It added that the deal could help to position it as "a leading building solution provider with a combined offering of steel and HVAC".
Zamil Industrial has had a presence in India for years where it owns a pre-engineered steel plant, engineering and information technology offices, and the Zamil Infra Pvt business.
The company said it has also sold 45% of the shares it owned in Italian air conditioning firm Geoclima.
The shares were sold back to founder Paolo Ferraris for $2.2m (SR: 8.4m).
It retains a 45% share in the business, but said its decision to sell was based on a shrinking demand for specialist air conditioning units in Europe.
It added that it would continue to own the HVAC technology, which will be used in air conditioning plants both in Saudi Arabia and India.
- Final chance for entry into CW's GCC awards
- Jordan looks to deepen ties with UK construction
- Qatar acquires 19.9% in HK retail operator
- Sun wins main contract on Dubai Sparkle Towers
- Saudi contractor MMG unveils new rescue plan
- Time running out for CW Awards nominations
- International law firm opens Riyadh office
- Arcadis completes Hyder and Callison acquisitions
- Al Khodari reveals 23.1% rise in Q3 profit
- Saudi investors target Dubai real estate