ABB India has announced that it will hive off and sell its turbocharger business to a new wholly-owned subsidiary.
In a stock exchange communication, ABB India said that its board has approved the creation of a new wholly-owned subsidiary. ABB India will sell its turbocharger business to this subsidiary, on slump-sale basis, for a consideration of Rs.310 crore.
The transaction is expected to be completed by end-February 2022. The decision to sell of the turbocharger business in the aforementioned manner was taken during ABB India’s board meeting of June 11, 2021.
In the financial year ending December 31, 2020, the turbocharger business reported sales turnover of Rs.187 crore, which represented around 3 per cent of ABB India’s total turnover that year.
In terms of the net worth of ABB India as of December 31, 2021, the contribution of the turbocharger business was less than Rs.25 crore, ABB India said in the communication.
Also read: ABB India Provides Electrification Solutions To World’s Longest Conveyor System
The turbochargers business is part of ABB India’s process automation segment. The business involves manufacturing and servicing of turbochargers.
Globally, according to information available on ABB’s corporate website, ABB manufactures turbochargers for gas and diesel engines of rating 500kW to over 80mw. Turbochargers find application in ships, power stations, diesel generating sets, diesel locomotives, large construction machinery, etc.
Featured photograph (source: new.abb.com) shows the MXP turbocharger by ABB
