Kirloskar Oil Engines Limited will fully acquire La Gajjar Machineries, enhancing its operational capabilities in the Indian pump manufacturing sector.

Information on the Target

La Gajjar Machineries Private Limited (LGM), headquartered in Ahmedabad, India, is a prominent manufacturer of submersible and monoblock pumps. The company is well-regarded for its established brands, "Varuna" and "Raindrop," which have garnered a solid reputation within the Indian market. LGM operates an extensive distribution network throughout the country, allowing it to reach a wide customer base effectively.

In 2017, Kirloskar Oil Engines Limited (KOEL) acquired a controlling stake of 76% in LGM, anticipating a strategic partnership that would enhance both companies’ operational capabilities. The recent decision to acquire the remaining equity stake will result in LGM becoming a wholly owned subsidiary of KOEL, further integrating its operations with the parent company.

Industry Overview in India

The pump manufacturing industry in India has experienced significant growth in recent years, driven by increasing demand from agricultural, industrial, and municipal sectors. With a population exceedin