Deputy High Commissioner of the UK Gareth Wynn Owen, Telangana Special Chief Secretary IT and Industries Jayesh Ranjan and others at a programme Raghu Vamsi Group had organised to celebrate the acquisition of PMC Group.
| Photo Credit: Arrangement
High precision engineering components and sub-assemblies maker Raghu Vamsi Group of Hyderabad has acquired British precision machining firm PMC Group which specialises in components for the oil and gas industry.
The acquisition will propel Raghu Vamsi Group, which predominantly is focused on the aerospace and defence industry and counts among its customers several global OEMs, to enhance its global footprint and expand capabilities, the Hyderabad-based entity said on acquisition of PMC Group from U.K.’s Pressure Technologies.
While Raghu Vamsi Group did not provide financials, a regulatory filing in September by Pressure Technologies on the sale of PT Precision Machined Components (PMC) to Raghu Vamsi Machine Tools showed the acquisition is for an initial enterprise value of British Pound 6.2 million with the potential to increase to British Pound 7.7 million dependent on future performance milestones.
The enterprise value includes net debt of British Pound 3.4 million, resulting in an initial equity value of £2.8 million. Confirming contents of the filing, sources said Raghu Vamsi has lined up investment plans, beyond the acquisition, to expand and grow the operations of PMC as it eyes a bigger pie of the $1 billion market.
PMC is focused on specialised components for use in safety-critical subsea and surface flow control applications. It caters to global oil and gas OEM customers through its Al-Met, Roota Engineering and Martract operations in the UK, according to Pressure Technologies.
In a release on a programme to mark the acquisition, Raghu Vamsi Group said its state-of-the-art manufacturing facilities in Hyderabad coupled with PMC’s expertise in precision machining will foster greater synergies in product innovation and cater to a wider segment of high-precision products, delivering advanced engineering solutions for the oil and gas sector and beyond. The combined strengths will provide a cost-efficient and high precision solution for customers.
“Our portfolio will also grow beyond our traditional aerospace and defence to include oil and gas sectors with an entry into growing European markets,” managing director Vamsi Vikas said.
PMC counts oil and gas OEMs like SLB, Baker Hughes, Halliburton, Expro, Tech FMC and One Sub Sea among customers and employs around 100 employees. It has a revenue of ₹180 crore with manufacturing capabilities of complex parts and assemblies in nickel alloys up to 6 meters in length.
Deputy High Commissioner of the UK Gareth Wynn Owen, Telangana special chief secretary IT and Industries Jayesh Ranjan, director-Aerospace and Defence Praveen PA, C&MD of MIDHANI S.K. Jha and Scientist-G of ARCI L. Rama Krishna participated in the programme.
Mr. Owen said the acquisition is a prime example of growing collaboration between the U.K. and India in advanced manufacturing and technology. Mr. Ranjan said it was truly inspiring to witness a Hyderabad-based MSME (Raghu Vamsi Group) transforming into a MNC with acquisition of PMC that traces its roots to over 100 years.
Published – November 11, 2024 02:55 pm IST
