Pluga designs, manufactures and distributes groundwater motor and pumping equipment, including submersible pumps. The company has a newly built facility in Vadodara and 11 branch offices throughout India. Pluga had revenues of approximately US$13 million in the fiscal year ended March 2014.
Franklin Electric purchased the 70% share with cash and is obligated to purchase the remaining 30% in 2017.
India is a key developing region market for Franklin Electric’s Water and Fueling Systems businesses.
“In Water Systems, our penetration of the Indian market has been limited to high-end, technologically advanced, constant pressure systems, mostly in urban locations. Pluga, a company recognized for quality, particularly in bore-hole pumping, has distribution reach in rural markets, with a solid position in residential and agricultural water equipment sales,” said Franklin Electric CEO Gregg Sengstack.
“Having recently moved into a new factory, Pluga provides in country manufacturing capability. Franklin Electric will be able to supply them the resources to accelerate new product development, improve efficiencies and expand marketing, sales and distribution beyond their existing network of branch offices across the country,” added Sengstack.
Franklin Electric sees additional opportunities with the Pluga management team to develop solar powered pumping systems specifically designed to address the needs of the Indian market.
Meanwhile, Franklin Fueling Systems Inc has acquired 65% of the shares of Mumbai-based Wadcorpp India Private Ltd, a distributor of fueling equipment throughout India.
Wadcorpp also has a newly constructed facility in Pune that is capable of manufacturing certain Franklin Fueling Systems products. In the 2014 fiscal year, Wadcorpp had revenues of approximately US$1 million.