Indo National Ltd Divests Stake in Kineco Ltd for Rs 220 Crore

Indo National Ltd, known for its Nippo brand, has sold its 51% stake in Kineco Ltd for Rs 220 crore. The Chennai-based company plans to use the funds for investments in new-age enterprises, aerospace, and defence industries. This divestiture aligns with its strategy to enhance shareholder value.

Indo National Ltd, renowned for its Nippo brand, declared on Tuesday that it will divest its entire 51% stake in Kineco Ltd, a composites manufacturer, for Rs 220 crore.

The Chennai-headquartered firm intends to channel the funds into new-age enterprises, the aerospace and defence sectors, as well as a range of fast-moving consumer goods categories, according to an official statement.

'The board of directors decided to sell its 51% stake in Kineco Limited to a consortium of investors for a consideration of Rs 220 crore,' the statement revealed.

Indo National is the second-largest player in the dry cell industry, boasting an annual production capacity of 800 million batteries. The company also has a presence in consumer electricals and torchlight manufacturing.

Indo National Ltd initially invested in Kineco in 2016, a composites business catering to defence, railways, and industrial applications. Chief Operating Officer Pavan Kumar BVS commented, 'We are deploying the funds into the aerospace and defence industries to strengthen the national interest... The divestiture aligns with this strategic focus, enabling us to generate more value for our consumers and shareholders.'

(With inputs from agencies.)