BIS Group entering the strategically important growth market of India via an acquisition
The Neo Group particularly provides maintenance, installation and assembly services for customers in the oil and gas, petrochemicals and energy industries. "Our entry into the Indian market marks a milestone in our ongoing efforts to broaden our international presence", says Dr. Michael Herbermann, CEO of the BIS Group: "The country is characterised by strong economic growth, offering great potential for development particularly in industrial service. The Neo Group addresses the very sectors which our own Company focuses on. With this acquisition, we will be creating the basis for establishing ourselves as a firm partner to the process industry in this market of the future."
"The Neo Group's customers", explains Dr. Rudolf K. Jürcke, Chief Operating Officer of the BIS Group, who is also responsible for India, "include Indian chemical and petrochemical companies as well as the BIS Group's global customers, some of whom have been active in this country for decades. In addition, there are potential major Indian customers such as Reliance, which are also increasingly strengthening their global outreach." Beyond this, the BIS Group's entry into this market will also give it access to resources and capacity for projects outside the Indian subcontinent such as the Middle East.
The acquisition of the Neo Group includes Neo Structo Construction Ltd., which specialises in maintenance, installation and assembly, and Spetech Plant Equipment Private Ltd. with its focus on mechanical prefabrication. It has been agreed not to disclose the purchase price. Continuity in local management will help to ensure successful integration, additionally aided by mentorships between BIS companies and staff on the one hand and the Neo Group on the other. This will facilitate integration efforts by encouraging intercultural collaboration.
Bilfinger Berger Industrial Services (BIS) provides industrial services chiefly targeted at the process and energy production industries. These services cover the entire life cycle of industrial assets and comprise individual activities, engineering, piping, plant assembly, extensive maintenance models and demanding large-scale projects. Established in 1887, Rheinhold & Mahla AG as the Company was previously called, or the BIS Group as it is known today, has around 28,000 employees and generated total revenues of over EUR 2.9 billion in 2010. A member of the Bilfinger Berger Multi Service Group since 2002, the Company has numerous operating companies across Europe as well as in North America. Further information available at www.BIS.bilfinger.com.