Kirloskar Oil Engines transfers business of Ahmedabad-based Optiflex Industries to step down subsidiary

Date: April 19, 2021

Publication: India Infoline News Service

Link: "www.indiainfoline.com/article/news-top-story/kirloskar-oil-engines-transfers-business-of-ahmedabad-based-optiflex-industries-to-step-down-subsidiary-121041900018_1.html"

The business of pipes, cables & wires of Optiflex Industries, a Partnership Firm, based in Ahmedabad, has been transferred to Optiqua Pipes and Electricals, a subsidiary of La-Gajjar Machineries (Subsidiary of Kirloskar Oil Engines Limited) on April 16, 2021.

Kirloskar Oil Engines Limited informed the exchanges that the business of pipes, cables & wires of Optiflex Industries, Partnership Firm, based in Ahmedabad, has been transferred (on a slump sale basis as a going concern) to Optiqua Pipes and Electricals Private Limited, subsidiary of La-Gajjar Machineries Private Limited (Subsidiary of Kirloskar Oil Engines Limited) on April 16, 2021.

Optiflex Industries in Ahmedabad, Gujarat is engaged in the business of manufacturing of UPVC column pipes, polycoated tapes, winding and electrical wires used primarily in the submersible pumps and other applications under the "OPTIFLEX" & "OPTICAB" brand. The enterprise valuation of Optiflex Industries is approximately Rs15cr.

“This will be a step in the direction of backward integration for La-Gajjar Machineries Private Limited (a subsidiary of the Company) having dedicated focus on its allied business verticals (wires, cables, column/casing pipes, agri/plumbing pipes, panels, etc.),” company said.

At around 10.09 am, Kirloskar Oil Engines Ltd was trading at Rs158.05 per piece down Rs4.85 or 2.98% from its previous closing of Rs162.90 per piece on the BSE.