TMCnet News
Suprajit Engineering Acquires Pricol's Speedo Cable Business [DealCurry (India)](DealCurry (India) Via Acquire Media NewsEdge) Automotive cable maker, @Suprajit_Engineering is acquiring the Speedo Cable Business from Coimbatore based @Pricol_Limited Limited for an undisclosed amount. The acquisition is being made on a slump sale basis, post which the company would relocate the plant and machinery from Pricol's plant to one of its facilities in Bangalore. Part of the deal would be funded by the cash INR 700-800 Mn has. Pricol is into manufacturing products like Suprajit which include speedometer cables, oil pumps, disc brakes, sensors, industrial gauges, vehicle security systems etc. The company has many strategic partnerships with many Japanese majors including Denso Corporation, Nippon Seiki Co. Ltd., Japan and M/s. Kojima Press Ind. Co. Ltd., Japan for other products. Last year the company had hived off its Coimbatore and Manesar plant into a 49:51 JV with Denso Corporation. Prior to this JV, Denso had a 12.5% stake in Pricol, however Denso divested the stake right before forming the JV. The INR 100 Mn Speedo cable business forms a part of the non-core business of Pricol whereas it would add to Suprajits business which makes variety of control cables like brake cables, clutch cables, throttle cables, starting cables, gear-shift cables, choke cables, speedometer/ tachometer cables, window regulator cables, mirror cable assemblies, seat recliner cables and latch release cables. Operating out of 13 manufacturing units, the company has a capacity to manufacture 150 million cables that are sold in the OEM and replacement segments. The company has also got land for setting up a new plant in Tamil Nadu which would take its capacity to 210 million cables. It clientele include TVS Motors, Ashok Leyland, TAFE, Hyundai and Ford among others. It had clocked revenues of INR 4.8 Bn with a PAT of INR 476 Mn. -BSE (c) 2014 EagleEye Research & Media Pvt. Ltd. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info). |