Italian heat exchanger manufacturer, LU-VE, has bought the Indian manufacturer, Spirotech, the company announced today.
Spirotech makes and markets heat exchanger coils in Bhiwadi, Rajasthan which is about 40 miles south of New Delhi. It makes advanced heat exchanger coils which are combinations of copper and aluminium, or aluminium and aluminium. Spirotech exports around 70% of its products where its customers use them in domestic appliances, air conditioning and refrigeration systems. Its founders, Dr Rajeshwar Kumar Malhotra (chairman) and Mr S. Srinivasan (managing director), started the company in 1994.
LU-VE will buy 95% of the existing Spirotech shares. The remaining 5% will be kept by Mr S. Srinivasan who will continue as managing director.
Spirotech turned over €21 million in the year up to March 2016, with post-tax profits of €2.1 million.
LU-VE is using the Spirotech purchase as part of its strategy to grow internationally. It will help LU-VE to grow in Asia, where the industrial and commercial refrigeration industry looks set to develop as the countries build their cold chains for the food industry.
“Spirotech has been for years preferred supplier of some of the most prestigious European brands, thanks to the respect of the highest quality requirements for products and services. In addition, it is well rooted in the local market. This acquisition is of strategic importance for us. It allows LU-VE Group to expand its presence in India and into the nearby countries, to extent the range of our applications, as well as to be closer to some of our global customers.”
“The Spirotech team is delighted to become a part of LU-VE. It will enable us to pool our considerable expertise in innovation to develop the best products for the benefit of customers worldwide. It will also enable us to accelerate our growth into new markets and in manufacturing capacity and manufacturing excellence”.