Mitsubishi Electric India to acquire Messung Group

Mitsubishi Electric India today said it will acquire its long-time distribution partner in India, Messung Group, for an undisclosed sum.

"The business transfer agreement signed by two parties in December 2011 is expected to be completed by the end of March 2012 to finalise the acquisition," it said in a statement.

Privately-held Messung Group had posted revenue of Rs 167 crore last fiscal. Almost 70 per cent of that came through distribution of Mitsubishi Electric's products in India.

Messung Group also has a plant at Pimpri in Maharashtra to manufacture programmable logic controllers (PLCs) and human machine interfaces (HMIs).

"The acquisition will allow Mitsubishi Electric India to accelerate its industrial automation systems business in India and strengthen local sales and solutions," the company said, adding that the operations of the consolidated business will start in April.

Mitsubishi Electric does not have any manufacturing plant in India at present. It markets industrial automation solutions, air conditioning systems and visual and imaging products here.

"The industrial automation market in India is expected to grow by more than 10 per annum annually. Mitsubishi Electric India will leverage the Messung Group's expertise in sales and manufacturing, to strengthen its solution business into this fast-growing market," it said.