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MACHINIST - Crompton Greaves acquires Sweden based Emotron Group

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Home arrow Engineering, Technology, Research and Development arrow Crompton Greaves acquires Sweden based Emotron Group

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Crompton Greaves acquires Sweden based Emotron Group
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Written by Vijay   
Friday, 20 May 2011

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Mumbai: Crompton Greaves Ltd (CG), part of the US $ 4 bn Avantha Group, has acquired Sweden based Emotron Group for 57.8 million euros. Established in 1975 with the merger of three companies, Emotron is a power electronics and engineering company which is engaged in engineering and manufacturing of drive solutions with latest IGBT based technology for variable frequency drives (VFDs) with a range from 200 to 690V, 0.2kW to 3000kW.

Emotron also manufactures soft starters and shaft power monitors widely used in several industrial applications.

The company makes state of the art rotary heat exchangers with switch reluctance motors for saving energy. They also have the ability to make medium voltage VFDs. Emotron also has experience in west European markets especially Germany and BENELUX and has requisite application knowledge of drive technology.

The focus application areas are flow control (pumps, fans and compressors), material handling (cranes, crushers,mills and conveyors) and lift control (elevators).

With this acquisition CG has taken a big step by building capability for a global presence in offering comprehensive energy saving solutions with latest power electronics technology.  CG already has its operations based in Europe and offers a variety of motors and generators for industrial markets. With this combination, both companies are expected to substantially gain and become a major force to recon with in Global VFD/ Industrial motors market. This acquisition also enables CG to offer integrated solutions along with its profound application domain knowledge of motors in India.

This is CG's eighth acquisition in a span of 6 years; the other successful acquisitions being - Pauwels (2005), Ganz (2006), Microsol (2007), Sonomatra (2008), MSE Power Systems (2008), Power Technology Solutions (2010) and three businesses of Nelco in 2010.

Emotron registered revenues equivalent to Euro 37.3 million as of December 2010 and earnings before interest, depreciation, taxation and amortization (EBIDTA) equivalent to Euro 4.4 million.

The rising energy costs, global focus on energy efficiency, low carbon emissions coupled with global legislations for energy efficiency is expected to catapult the global market for VFDs from 10 bn USD to USD 16 bn till 2014.

Present market for VFDs in India is estimated to be USD 375 million and is likely to grow rapidly with industry focusing on green products The acquisition fills the gap in the automation solutions space for CG's industrial business.

 
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