Engineering company, DavyMarkham (featured in IM April 2009, pp64-65) has been acquired by Indian EPC firm, Hindustan Dorr Oliver (HDO), a subsidiary of IVRCL Infrastructures & Projects, which is involved in engineered solutions, technologies and EPC installations in liquid-solid separation applications. The acquisition provides HDO with an entry into the heavy engineering sector, whilst boosting DavyMarkham’s sales and infrastructure in India.
DavyMarkham supplies international markets with mine hoisting equipment, and also undertakes the machining of individual components weighing up to 350 t. It provides total engineering capabilities for extremely large turnkey projects, managing the whole process from engineering design, fabrication, machining to installation and commissioning of heavy and complex components and assemblies. In mining, DavyMarkham has supplied more than 300 hoists across the world for a variety of environments, from Northern Canada to Ghana.
IVRCL is amongst the leaders of the Indian infrastructure industry, with a group turnover exceeding $1 billion, and it owns a controlling stake in HDO. HDO sees the acquisition as a platform for expanding into new sectors, using DavyMarkham’s corporate credentials and engineering expertise to gain a foothold amongst domestic heavy engineering clients. It intends to invest strategically in new plant and equipment at the Darnall works, continue the company’s successful apprentice training scheme and expand DavyMarkham’s sales and marketing infrastructure, in order to tap into opportunities in India. The IVRCL Group will introduce the Sheffield-based company to its existing international contacts.
“It is great news for DavyMarkham’s customers, employees and suppliers, since HDO along with its parent is financially very strong, very growth orientated and dedicates itself to continuous improvement in all fields of its business,” says Parkin. “There are considerable synergies between ourselves and HDO, while IVRCL’s commercial aspirations in markets like nuclear energy match ours perfectly.”
The new owner HDO is based on a 40,000 m2 site and equipped with an R&D facility certified by the Indian Government, HDO is exploring business opportunities in oil and gas, power and uranium processing and this month announced moves into the nuclear power plant sector.
This provides a synergy to DavyMarkham’s own market objectives. When linked with the Sheffield company’s close physical and technical links to the nearby Nuclear Manufacturing Research Centre, this should enable both concerns to develop engineering and manufacturing facilities for supplying new-build nuclear energy markets. HDO also intends to build DavyMarkham’s presence in the oil, gas and power transmission markets, borrowing upon the group’s expertise and industry contacts.
IVRCL employs over 7,500 full-time staff and around 15,000 temporary workers. HDO prides itself on a well-qualified and highly trained human resource base, with the majority of its employees either technical or professional grade. In Sheffield too, the emphasis will remain on training, with the apprenticeship program and links with local universities and technical colleges continuing, whilst there should be considerable opportunities for career development amongst existing staff, as the business expands in India as well as UK. DavyMarkham’s Managing Director, Kevin Parkin, and Financial Director, Duncan Hay, will continue in their current roles, along with the management team.
“We shall certainly need more skilled workers and to train up people to fill important management and production roles, as the business grows,” says Parkin. “The good news for young people and their parents in the region is that we shall be able to offer jobs with a good future in an expanding industry, for many years to come.”
