Page 42 - IACC Newsletter August-September 2013 Issue 13

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Allcargo is buying Econocaribe through its wholly-owned subsidiary, ECU Line, in Belgium. Almost 70% of the funding for
the deal is coming from Belgium banks, while the rest of it is being funded by ECU Line's internal accruals. Allcargo raised
funds from Belgium banks at less than 3% interest.
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Carlyle-backed Infotech in talks to buy US firm
Infotech Enterprises Ltd, an Indian software services provider to aerospace and automotive industries, plans to acquire
at least one company in the US this year to expand in its biggest market. The firm, backed by Carlyle Group LP, will use
part of its Rs 600 crore ($96 million) cash for the purchase, Chairman and Managing Director, BVR Mohan Reddy said
recently. Infotech plans to utilize its record cash pile to expand and revive profit after net income dropped for two
straight quarters. The company might spend about $25 million on the acquisition, Reddy said, without identifying a
target.
The company's cash reserves "in the best of times, is not giving more than nine per cent return," Reddy said. "So,
understandably, we are very keen that we should go toward acquisitions." North America accounts for more than half
of Infotech's revenue, while it generates about 27 per cent of sales in Europe, according to Reddy. The company's sales
rose six per cent to Rs 480 crore in the three months ended June 30.
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Kirloskar arm opens new unit in Atlanta
SPP Pumps, a subsidiary of Kirloskar Brothers Ltd (KBL), has inaugurated its most advanced facility at Atlanta, USA. This is
KBL’s seventh manufacturing facility worldwide. With an investment of $6 million, the new plant has an installed
capacity of 2,500 units annually. The latest engineering, testing and training facility in Atlanta will manufacture and
assemble end suction, horizontal split case, multi-stage and vertical turbine pumps.
The new vertical turbine test facility will enhance its capability to expand in the power sector and increase the
dominance in the fire market. With the opening of the new facility, SPP Pumps’ production capacity will increase by 30
per cent and the turnover is expected to reach $ 40 million in the next three years.
John Kahren, President of SPP Pumps Inc., said: “With this new investment, we are eyeing to expand into new markets
and continue our dominance in the fire pump markets. The Atlanta facility will be instrumental in achieving our
projected growth for years to come.”
The new plant will strengthen SPP Pumps’ growth in the industries such as municipal, commercial, industrial, HVAC,
process, power and fire pump markets.
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