Last checked at 30 Sep 2008 07:00
Renold plc
("Renold" or the "Group")
Market Leadership in India
Renold is pleased to announce that its acquisition of a 75% interest in the industrial chain business of the Indian quoted group, L.G. Balakrishnan & Bros Ltd (LGB) has completed.
LGB is the market leader for the production and distribution of industrial chains in India. This business will provide Renold with an established manufacturing base and sales distribution network which will enable Renold to promote its existing product range into India's rapidly growing market place. In addition, the business, based in Tamil Nadu, with 500 employees, manufactures products not currently in the Group's portfolio which can be sold through Renold's existing international sales operations.
This acquisition will both augment the company's order book, which at the end of August 2008 was 36% higher than at the end of August 2007 (20% at constant exchange rates), and will add additional capability and capacity to fulfil customer requirements. Renold's order book has grown sequentially in each month of the current financial year which brings with it improved earnings visibility.
The recent strengthening of the US Dollar against Sterling will be significantly advantageous to Renold although, as a result of the Company's exchange rate hedging policy, the benefit will be more significant in 2009/10 than the current financial year, as will the recent favourable movement in steel prices should they continue to trickle lower.
30 September 2008
Enquiries:
| Renold plc | 0161 498 4517 |
| Bob Davies, Chief Executive | |
| Peter Bream, Finance Director | |
| College Hill | 020 7457 2020 |
| Mark Garraway | |
| Adam Aljewicz |
NOTES FOR EDITORS:
Renold is a global leader in the manufacture of industrial chains and also manufactures a range of gears and couplings which are sold throughout the world to a broad range of original equipment manufacturers and distributors. Its products are used in a wide variety of industries including manufacturing, transportation, energy, steel, and mining. Renold has a well deserved reputation for quality that is recognized worldwide.
Renold has 15 manufacturing plants throughout the world and employs 3,000 staff.
For more information on Renold, visit www.renold.com