L&T Capital buys stake in Indian EMS provider Rangsons Electronics

August 27, 2007

L&T Capital Company Ltd., a SEBI registered merchant banker and group company of Larsen & Toubro (L&T) with a sharp focus on investment banking and capital market activities, has bought stake in Mysore, Karnataka, India-based Rangsons Electronics, an electronics manufacturing services (EMS) provider, for approximately Rs 100 crore

L&T is India's leading technology, engineering and construction company. R. N. Mukhija, president of operations, L&T, said, "Rangsons is well positioned to create significant value for its stakeholders. We see a great opportunity for Rangsons to be a global end-to-end solutions provider in EMS."

Rangsons Electronics, a part of NR Group, has four facilities in Bangalore and Mysore and an international procurement office in China. Rangsons caters to the high-mix, high-tech product spectrum of leading Indian and global original equipment manufacturers.

In 2006, Rangsons Electronics increased capacity roughly 50% with a compounded annual growth rate (CAGR) of 65% in the last five years.

It is reported L&T is beefing up its presence in the EMS sector. This division contributes approximately Rs 2,000 crore to L&T's top line and is engaged in the business of low-voltage switchgear products; electrical systems, energy meters, medical equipments, petroleum dispensing pumps, and automation solutions.

Source: L&T Capital Company, Ltd.