The economic crisis has changed the strategic thinking of KMN Holdings. Before the crisis the holding company was involved mainly in the defense industry wheras today 60% of its activities are focused on water technologies.
The company controlled by Yitzhak Tshuva's son-in-law Roni Elroy who serves as chairman and headed by Giora Inbar, a reserve brigadier general has moved from defense activities to water.
Inbar said, "A company like ours which is influenced by foreign currency must focus activities on engines of growth that will continue to grow even in a recession. Water is such a sector."
He added, "Our companies set up a pavilion at the Watech international exhibition in Tel Aviv in November 2009 and we got 600 leads, that is to say people who left their visiting cards. So we started doing deals."
KMN has also started creating synergy between its subsidiaries, which include Hamechadesh Industries (pumps and motors), Mendelson (pipes), S. Bar (infrastructures), Alexandrovitz (faucets) and Dutch subsidiary Power Plastic for greenhouses and irrigation equipment. Other companies include Mei am (managing infrastructures); Dodson Global (pipe accessories and faucets) and Palad (polyethylene accessories).
KMN reports that revenue for the first nine months of 2009 was NIS 80 million with cash reserves of NIS 260 million on September 30 2009.
Published by Globes [online], Israel business news - www.globes-online.com - on March 2, 2010
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