IFB acquires industrial laundry equipment biz of Ramsons Group
: IFB Industries Ltd has agreed to buy the industrial laundry equipment business of Ramsons Group, the largest maker of such equipment in India.
IFB is a leading manufacturer of consumer durables and home appliances while Bengalurubased Ramsons is India’s largest manufacturer of industrial laundry, garment finishing and leather processing equipment.
Investment bank Singhi Advisors was the exclusive advisor to Ramsons Group on the transaction.
“Ramsons is an almost six-decade-old brand. They started the business in 1960s when they started manufacturing machines for garment finishing for the textile industry. They have been present in the laundry segment for last 20 years. They are the largest player in India,” said Deepak Ramani, director at Singhi Advisors.
Main customers in the industrial laundry segment are hotels, hospitals, railways, defence establishment, hostels, commercial and retail laundry setups, Ramani added. India’s industrial laundry market is estimated at ₹500 crore.
IFB currently caters to the industrial customer, with two major product categories i.e.
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industrial laundry equipment and industrial dishwashers. The acquisition will provide IFB access to technical know-how, manufacturing capability and a large customer set.
“The acquisition will give IFB close to 3,000 customers and installed machine base of 10,000 machines. The acquisition will help IFB compete with global players in this segment. Ramsons also exports laundry products, 10% of the sales are from exports,” Ramani said.
The acquisition gives IFB a strong technical foothold and manufacturing capacity in India, he added.
“Ramsons will retain its garment finishing and leather processing equipment business which caters to large garment, textile, leather manufacturers in India and across global markets,” Ramani said.
For the quarter ending September 30, IFB Industries reported a consolidated revenue of ₹689.5 crore, as compared to a revenue of ₹626.9 crore in the same period of previous fiscal. The company reported a profit of ₹34.37 crore in the September quarter, as against a profit of ₹35.64 last year.
The Ramson acquisition adds to the couple of acquisitions that IFB group has made in the recent years. In 2017, it acquired a 100% stake in Global Automotive & Appliances Pte Ltd, while in 2016, it had acquired a 51% stake in Trishan Metals.
IFB Industries is part of the diversified IFB group with interests in consumer appliances (home washing machine, clothes dryer, kitchen solutions, air conditioners, dishwashers, and industrial solutions), automotive components .