Japanese conglomerate Shinryo Corporation is entering the Indian market by acquiring an 85% stake in Mumbai-based GMP Technical Solutions for an equity valuation of INR 185 crore (USD 22 million). This move aims to capitalise on the growing demand for clean room technology in India's electronics and pharmaceutical sectors. Clean rooms, crucial for manufacturing sensitive products, require controlled environments. GMP, India's second-largest clean room equipment maker, specialises in partitions and will benefit from Shinryo's HVAC expertise. This acquisition is driven by India's booming electronics and pharmaceutical industries, valued at USD 70 billion and USD 45 billion in 2023, respectively.
Japanese conglomerate Shinryo Corporation is making a move into the Indian market by acquiring a majority stake in a clean room technology company. This deal positions Shinryo to capitalise on the growing demand for clean room technology in India's booming electronics and pharmaceutical sectors.
Shinryo announced it will acquire an 85% stake in Mumbai-based GMP Technical Solutions, India's second-largest clean room equipment maker, for an equity valuation of INR 185 crore (approximately USD 22 million). Clean rooms are specialised environments with controlled temperature, air quality, and humidity to prevent contamination. They are critical for manufacturing sensitive products in industries like pharmaceuticals, electronics, and biotechnology.
GMP Technical Solutions specialises in clean room partitions, the physical barriers that create these controlled environments. Their experience in this area is particularly attractive to Shinryo, a global leader in heating, ventilation, and air conditioning (HVAC) systems. Clean rooms require sophisticated HVAC systems to maintain the necessary air quality and temperature.
This acquisition benefits both companies. Shinryo gains a foothold in the rapidly growing Indian cleanroom technology market, offering them a complete solution for clean room construction. GMP benefits from Shinryo's expertise and global network, potentially expanding their market reach and product development beyond their current 15% stake.
The demand for clean room technology in India is driven by several factors. The government's push for domestic electronics manufacturing (valued at USD 70 billion in 2023), the growing pharmaceutical industry (valued at USD 45 billion in 2023), and advancements in biotechnology all require clean room facilities. This trend is expected to continue in the coming years, making the timing of Shinryo's acquisition strategically significant.
The acquisition is subject to regulatory approvals, but with both companies expressing confidence, it is expected to be finalised soon. This move by Shinryo highlights the growing importance of clean room technology in India and the potential for further collaboration between international and domestic players in this field.