KEC Expands Global Footprint; Acquires Transmission Tower Mfg Unit in Dubai

RPG Group flagship firm KEC International (KEC), through its arm KEC Towers LLC, has acquired an automated transmission tower manufacturing facility in mainland Dubai, United Arab Emirates (UAE).

The global infrastructure Engineering, Procurement and Construction (EPC) major has won Dubai-based facility, with a capacity of 50,000 tons p.a., in an auction sale conducted by the Emirates Auction Authority.

The BSE-listed company further claimed that this acquisition has expanded its global manufacturing footprint and strengthens it’s positioning as a key player in the infrastructure space.

With this acquisition, now, the company has a total of six facilities, manufacturing transmission towers, Railway & solar structures, monopoles and hardware spread across India, UAE, Brazil and Mexico.

However, the company didn’t disclosed the acquisition cost.

Now, KEC’s aggregate manufacturing capacity reached up to 4,22,200 tons p.a. and make it one of the largest globally operating transmission & distribution (T&D) player.

Moreover, the acquisition has provided the company a strategic foothold to serve the markets with high growth potential in the Middle East and Africa.

Besides, it will enable the company to leverage its technical know‐how to create effective EPC solutions and drives deeper connect with customers.

It will also help in enhancing the credentials of the company to secure additional business in the MENA region on account of local price preferences and fiscal benefits.

Commenting on the auction win, Vimal Kejriwal, MD & CEO of KEC International Ltd., said that “we are happy that we have acquired a fully automated transmission tower manufacturing facility in UAE-Dubai. This facility will help us in expanding our business at a time when we are clearly witnessing resurgence of tendering activity in the Middle East and North Africa. We believe this acquisition to be value accretive to our stakeholders.”

Furthermore, the company believes that the plant location with the proximity to world class infrastructure facilities such as Jebel Ali Port and Al Maktoum International Airport, will sharpen it’s ability to improve the efficiency and bring flexibility in utilizing the plant to serve as a hub for merchant supplies of towers.

Post acquisition, shares of the company surged 1.90 percent, to 345.50 a piece, at 13:05 p.m. on BSE.

Meanwhile, the company has its presence in the verticals of power transmission & distribution, Railways, solar, civil, smart infrastructure and cables. It is currently executing infrastructure projects in thirty countries and having footprint in more than 100 countries, including EPC and supply.