Renold set for Indian bid

ENGINEERING company Renold is on the brink of purchasing a majority stake in an Indian manufacturer.The Manchester-based company hopes to acquire a 75 per cent stake in LG Balakrishnan and Bros (LGB) which is based in the southern state of Tamil Nadu.Renold manufacture gears and couplings for escalators, theme park rides, and the manufacturing, transport, energy, steel and mining industries.Yesterday, its shares jumped 3.5p - which is four per cent - to 87.5p. The acquisition is dependent on a number of factors including regulatory and LGB's shareholder approvals.LGB is already the market leader for the production and distribution of industrial chains in India and the deal will provide it with an established international distribution network.The acquisition will also enable Renold to promote its existing product range into India's rapidly growing market place as well as exploit new product, market and export opportunities.