Konecranes buys WMI Cranes
By Alex Dahm12 October 2010
Industrial crane manufacturer Konecranes has acquired Indian crane company WMI Cranes Ltd for around US$80 million.
The Indian company, owned by managing director Gopal Vazirani and his family, is a leading manufacturer of heavy duty cranes in the country, according to Konecranes. It has more than 4,000 cranes in India and a countrywide sales network on which Konecranes can base development of maintenance services.
"WMI boosts our presence significantly in the fast growing Indian crane market. Our aim is to further grow the business potential by extending the offering with technologies developed by Konecranes. The product offerings of the two companies complement each other very well. Furthermore, the acquisition of WMI adds India truly into our sourcing and supply network. Finally, WMI creates an excellent base for building our service business in India, in addition to our growing current service business, via its vast installed crane base." said Pekka Lundmark, Konecranes president and CEO.
For the year to 31 March 2010, WMI net sales were about $41 million. Orders worth more than $69 million are on the books and its order intake prospects are good, according to Konecranes. WMI is strong in the steel sector and other industrial markets, including engineering, energy, shipyards and logistics. There are two production plants in Mumbai and Jejuri, near Pune.
Konecranes will acquire the WMI shares in two phases. First, 51% for INR 1,690 million ($39 million). About a year later Konecranes will purchase the remaining 49%.
"Joining the forces of WMI and Konecranes creates a new leader in the fast-growing Indian crane industry. Our customers will benefit in terms of combined offering of products and technology of both companies and high quality service. This will establish a solid foundation for the prosperous future," said Gopal Vazirani.