British industrial chain maker Renold Plc has taken a 75 per cent stake in the industrial chain business of Indian-quoted group LG Balakrishnan & Bros (LGB). The terms of the deal remain undisclosed.

British industrial chain maker Renold Plc has taken a 75 per cent stake in the industrial chain business of Indian-quoted group LG Balakrishnan & Bros (LGB). The terms of the deal remain undisclosed.

Under the deal, Renold will gain a manufacturing plant and a sales distribution network through which it plans to promote its existing products into India’s fast growing marketplace.

The acquisition will also boost the company’s order book, which at the end of August was 36 per cent higher compared with August 2007.

The Indian business, based in Tamil Nadu, will add new products to Renold’s existing portfolio, which will be sold through the company’s existing sales networks.

The maker of chains, gears and couplings revealed its plans to make acquisitions in South America over the coming year following two recent deals in China and India.

“I would happily look at opportunities in South America, and Brazil in particular, if an acquisition with the right characteristics came up,” said Renold chief executive Bob Davies.

Renold has 15 manufacturing plants throughout the world and employs 3,000 staff.