Everest Kanto exits China-based subsidiary

Gas cylinder maker Everest Kanto has sold its entire holding in subsidiary EKC Industries (Tianjin) Company Limited.

The move is in-line with the company’s strategy to focus more on domestic market and reduce its debt. Increased use of natural gas use in vehicles has turned the company’s domestic profitable. The company has a 60 per cent market share in the Indian CNG cylinders sector.

EKC Industries was established in 2008 and specialize in manufacturing CNG cylinders, jumbo cylinders and tube skid trailers.

The deal was sealed through an equity transfer agreement with China-based You Yuan Office Union (Tianjin) Company Limited. The agreement is subject to approval from shareholders and regulatory authorities.

Meanwhile, at 13:28 hours, the stock of Everest Kanto was quoting Rs. 51.85 per share, up by 3.70 per cent on Monday.