Lloyds Engineering Works Limited (LEWL) has signed a Memorandum of Understanding (MoU) to acquire the engineering division of Bhilai Engineering Corporation Ltd. (BECL). The acquisition aims to expand LEWL’s production capabilities, integrating BECL’s operations with its existing manufacturing infrastructure.
The BECL engineering division, founded in 1960, specializes in providing engineering solutions across sectors like metallurgy, mining, railways, space, nuclear, and defense industries. The facility covers approximately 30,566 square meters and is equipped with advanced machinery for heavy and precision machining. BECL is capable of working with materials such as stainless steel, aluminum, manganese, and various types of steel.
Key points of the acquisition include:
- LEWL’s production area will increase by 2.4 times with the addition of BECL’s facility.
- BECL’s assets, including a 16-acre lease of land, will allow LEWL to expand its operational capacities.
- The acquisition is expected to deliver a payback in three to four years.
- The deal involves acquiring only the division’s assets, with no liabilities being transferred.
- The acquisition will be funded without taking on debt.
Shreekrishna Gupta, Executive Director of LEWL, commented that this acquisition is a strategic step to enhance production capabilities and support future growth.
The financial terms of the deal were not disclosed.