Glasgow power rental specialist Aggreko has snapped up an Indian business as a route into the market while offloading a niche European operation.

Aggreko is paying £3.9m for the power rental business of Cummins India in a deal that is still subject to the approval of CIL's shareholders.

The operation, which supplies power units to com-panies, is forecast to have revenue this year of £2.4m.

Aggreko chief executive Rupert Soames said: "It is profitable but it's a tiny number. It is basically a foundation from which we can start working. (India) is potentially a big market."

Aggreko has also sold its European oil-free compressed air (OFA) rental business to Atlas Copco for £12.3m, subject to regulatory clearance.

The machinery is typically supplied to food businesses and other companies that need to keep impurities out of their air-cooling or air-drying processes. But the sector makes up just 5% of Aggreko's worldwide revenues.

"We do not believe that our European OFA business has the scale to warrant further investment," Soames said.

Aggreko said it would continue investing in its OFA rental business in North America. Soames said: "Their transactions are in line with our strategy of focusing our capital investment in growing markets where attractive returns can be achieved.

"Our investment means we will have achieved strategic objectives to have operations in the world's four largest developing economies - India, Brazil, Russia and China."

Aggreko shares closed down 11.5p or 3% yesterday at 371.25p.