MAN Diesel Acquires Bangalore-based SME MaxWatt Turbines

<p><em>MaxWatt will be integrated into the turbo business of Man Diesel and Turbo and the new entity will run under the name MAN Turbomachinery India Pvt Ltd, says <strong>K Chandra Mohan</strong></em><br><br>MAN Diesel &amp; Turbo (MDT) SE, a wholly-owned subsidiary of MAN SE (part of Volkswagen AG) acquired 100 per cent stake in Bangalore-based engineering firm MaxWatt Turbines, an Indian company specialised in engineering, production and servicing of steam turbines for application in power generation and mechanical drives. India has an installed power capacity of 200,000 mega watt and the government wants to double the capacity in ten years. Turbines become an important part of the business and MDT wants to be in the centre of the power industry's growth.<br><br>MaxWatt will be integrated into the turbo business of MDT and the new entity will run under the name MAN Turbomachinery India Pvt Ltd. The current MD of MaxWatt, C.G Venkatesh, will continue to lead the business. With this acquisition, MAN will not only cater to the Indian market, but it will expand its footprint to South East Asia.<br><br>However, the company did not disclose the price of the acquisition. Sources add that the company was acquired for a little less than $90 million. MaxWatt's turnover last financial year was a little more than Rs 100 crore.<br><br>“MaxWatt is an established player in the Indian and Asian power generation business in the lower power segment,” says Dr Uwe Lauber, CEO and Chief sales officer of MAN Diesel &amp; Turbo SE.<br><br>“By acquiring them we expand our portfolio and add steam turbines for numerous standard applications to our existing range," says Uwe Lauber. He added that the move will also help the company gain access to new customer groups and market segments. "MAN Diesel &amp; Turbo has always chased M&amp;A projects, if they satisfy a sound strategic rationale. With MaxWatt there are close to zero overlaps in the product ranges, which is why it is an excellent match for us," he said.<br><br>MaxWatt Managing Director C.G Venkatesh says “MDT is a leading power generation business and our customers across the globe will profit from an extended product range from this acquisition."<br><br>MaXWatt provides employment to more than 150 people in engineering, production, sales and service. It has installed a three-digit number of steam turbines in the field and caters a worldwide customer base. Besides MAN’s workforce in India will further increase to over 650.<br><br>MAN Diesel &amp; Turbo sees a positive response from the government, since it has set a course to trigger growth and further update the country’s infrastructure.&nbsp; The 'Make in India’ campaign is focused on creating the availability of skilled manpower and a strong judicial system to provide a good platform to expand a manufacturing firms local footprint. MAN has a turbomachinery installation and service shop at Vadodara, in the state of Gujarat and engineering and production centre for large Diesel engines in Aurangabad, Maharashtra.</p>