It is a time of mergers and acquisitions. Following this global trend UK-based Automotive engineering major, Renold Plc has acquired 75 per cent stake in LG Balakrishnan & Bros (LGB) for 5.7 million pound. The remaining 25 per cent stake in the business would be retained by LGB.

Renold Group and LGB have agreed to contribute to the equity share in the proportion of 75 per cent and 25 per cent, respectively. The acquisition would help Renold Group to promote its product range into rapidly growing market place. LG Balakrishnan & Bros (LGB) is a
Coimbatore-based auto-parts maker company. LGB is a listed company in India and it has a workforce of 500 persons. It would provide an established manufacturing base and sales distribution network to Renold Plc.

LG Balakrishnan & Bros reported a drop in standalone net profit for the fourth quarter ended March 2008. This drop has taken place due to substantial fall in operating margin of company. The profit of the company declined 67.62 per cent to Rs4 crore from Rs12 crore in the same quarter as compared to previous year.