New Delhi: AC manufacturing giant Amber Enterprises announced the acquisition of ILJIN Holdings, an Israel-based company, to strengthen its position as a consumer durables electronics manufacturer. The company, which holds about 25% of the market share in India’s room air conditioning (RAC) market, aims to diversify into related segments to hedge against the seasonal nature of the business.
Incorporated earlier this month in Israel, ILJIN Holdings will serve as a Special Purpose Vehicle (SPV) to facilitate the company’s international investments and acquisitions, paving the way for further expansion.
The company has recently acquired a majority stake in Israel-based Unitronics and Bengaluru-based Power One Microsystems Ltd. Besides this, the company aims to invest about Rs. 4,200 crore in manufacturing Printed Circuit Boards (PCBs) and other subsystems. Currently, the company manufactures subsystems for railway and defence purposes, in addition to its AC manufacturing, at 31 manufacturing facilities across India.
Presently, the Gurugram-headquartered company gets about 70% of its revenues from consumer durables, while the rest comes from electronics and subsystems. The company has been in focus for the past year, acquiring as many as eight companies as it looks to ramp up its manufacturing capabilities in line with PM Modi’s Make in India initiative.
Last quarter, the company continued to report a strong revenue growth rate of 44% YoY at Rs.3,449 crore with its EBITDA rising 31% YoY to Rs.263 crore and a Profit After Tax (PAT) of Rs.106 crore, a 42% growth from last year. The company’s shares have risen 66% in a year, mainly on the back of strong demand in the AC segment, coupled with its ambitious diversification plans.
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