Press Releases

De Raj Group AG acquires MKG Group of Companies: Expansion Downstream the Energy Sector

Cologne, 20th April 2020

De Raj Group is pleased to announce the acquisition of 100% of the MKG Group of Companies, based out of UAE. MKG was established in the year 2006, with operations and offices in the United Arab Emirates (UAE), Indonesia, Malaysia, Singapore, Thailand, Myanmar, India, Qatar, Oman. MKG as a Group provides services to the Engineering & Construction sector (both Oil & Gas and Non-Oil & Gas Divisions), full spectrum of Telecommunication Services, and the Renewable Energy sector. The MKG Group has a project footprint in more than 20 countries across the globe.

Another unique service, which MKG provides to the construction industry is the “Construction Management services” using their in-house developed database software system “Amogh”. This particular software provides the Construction Management services using their database system Amogh for Piping, Structure and Electrical & Instrumentation, total material management. Since 2006 this software has executed over 60+ projects out of which 10 are still ongoing worth 10 million USD. As an overview it is a managed service provided using experts and software/database by integrating all the information like Engineering, Procurement, Material, Schedule, Logistics, Quality requirements and customized site requirements and project multidiscipline interface management.

The official acquisition date is 18th April 2020. The liabilities of MKG are being assimilated into De Raj Group as part of the consideration. Additionally, the current promoters of MKG Group will be entitled to shares of the De Raj Group, equivalent to 49% of the valuation of the acquired businesses, net of liabilities that are being acquired by De Raj, from the end of 12 months to 36 months post acquisition.

Vaidyanathan Nateshan, the Group Chief Executive Officer of De Raj Group commented that this opens up a new vista of opportunities for De Raj Group in the downstream energy sector. De Raj’s strategy of expanding its focus to the downstream oil and gas area, will be delivered with the acquisition of the MKG Group as well as open up new opportunities for it in the telecom and other infrastructure business areas.

Surendra Kumar Mahanty, the Promoter and CEO of MKG Group commented that they are excited to work with De Raj and see this as the perfect platform to serve their expansion plans.

MKG Group’s IT business division alone generated a topline of around USD 5.8 mn and an EBIDTA of over USD 1 mn in 2019.