Indo National Ltd, the manufacturer of consumer electrical products and dry cell batteries under brand Nippo, on Tuesday, announced to divest its entire 51 per cent stake in Kineco Ltd, a composites manufacturer, for Rs 220 crore.
The Chennai-based manufacturer plans to deploy the funds in new-age enterprises, aerospace and defence industries, as well as across diverse categories of the fast-moving consumer goods sector, according to a statement.
"The board of directors decided to sell its 51 per cent stake in Kineco Limited to a consortium of investors for a consideration of Rs 220 crore," it said.
Advertisement
Indo National is the second-largest player in the dry cell industry, with a production capacity of 800 million batteries per annum. Besides it also has a presence in consumer electricals and torchlights manufacturing.
In 2016, the company invested in Kineco, a key composites business offering a wide range of products and processing technologies for defence, railways and industrial applications.
Commenting on the development Chief Operating Officer Pavan Kumar BVS said," We are deploying the funds into the aerospace and defence industries to strengthen the national interest...The divestiture is in line with this strategic focus that will enable us to create more value for our consumers as well as shareholders.”
Advertisement
Kineco manufactures composites for railways, industrial applications and defence. Kineco further holds a 51 per cent stake in Kineco Kaman Composites, which is a joint venture with Kaman Aerospace Group, USA (A NYSE listed entity) to manufacture advanced composites for the medical and aerospace industries
Established in 1972, Indo National Ltd is a leading manufacturer of dry-cell batteries in India. It was started in a JV with Japan's Matsushita Electric Industrial Co.
Just one email a week