Sakthi Auto acquires Europe cos for €95 m
Sakthi Auto component, a subsidiary of Sakthi Sugars, has acquired Internet Europe, a group of companies, form Internet International US for €95 Million (Rs.532 crore) which is one of the largest acquisition in auto component sector Internet Europe, which owns two plants in Germany and one in Portugal, is engaged in precision castings in ductile iron for the automotive industry, with an annual capacity of 1.65 lakh metric tones. Sakthi Auto Components owns and operates two plants in India producing ductile and grey iron precision castings with a capacity of 60,000 metric tones.
The new entity, based in Germany, would be known as Sakthi Automotive Group, SAC chairman and managing director M Manickam said addressing through a video-conference from Germany on Monday. Mr. Manickam said the good synergy in the business would help the group to access European markets, apart from benefiting from the transfer of technology and available manpower. "SAC would benefit through technology at a much higher level as they are at least 10 to 15 years ahead of us," he added.
On how long SAC would continue to ride piggy-back on Sakthi Sugars, he said it had to attain a critical size in the global scale which would be $ billion.
"Right now, it is the 100% wholly subsidiary, which has been getting a monthly business of Rs. 20 crore. In the coming year, while we are aiming for a Rs. 300 crore business, Internet Europe is expected to contribute €180 million (Rs. 1, 100 crore)," he added.
Sakthi Automotive Group chief executive Laurence Vine-Chatterton said the Internet Europe's client list included TRW, PSA and Bosch.
Internet Europe, which is on profit track for two decades now, recorded a turnover of € 165 million last year.
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