GMM Pfaudler, India’s largest manufacturer of Glass-lined equipment has acquired Mavag AG, a Zurich-based high-end engineered equipment company for an undisclosed amount.

The two companies would leverage on their synergies to emerge as leading suppliers of critical equipment for the pharmaceutical and biotechnology industry.

Tarak Patel, Executive Director of GMM Pfaudler said, “With this acquisition, GMM hopes to significantly increase its topline. GMM bought the Swiss company through a special vehicle, GMM Mavag AG, created recently in Zurich for the purpose of acquisition.”

Mavag, with turnover of over Rs 50 crore in calendar 2007, is a leading supplier of highly engineered critical equipment for the pharmaceutical, bio engineering and fine chemical industries.

Ashok Pillai, Chief Operator Officer, GMM Pfaudler said, Mavag AG, a strong brand in Europe, could help the Indian pharma industry upgrade its products to the stringent international standards and become competitive in the market.

The acquisition will be funded entirely from GMM’s cash reserves.

The stock of GMM Pfaudler closed on Friday at Rs.138, down by 2% compared with previous close of Rs. 140. It touched an intraday high of Rs. 141 and low of Rs. 136.