Windsor Machines to acquire Italian auto component firm Italtech

BY  BHAWNA GUPTA
Thursday, April 25, 2013 - 18:42 IST


The deal is being routed through a European joint venture with Geoplast, a part of Italy’s Pegoraro Group.

Thane-based Windsor Machines is acquiring Italian auto component firm Italtech through an overseas joint venture Wintech S.r.l. for an undisclosed amount, as per a stock market disclosure.

Windsor’s wholly owned Dutch arm Wintech B.V. will hold 80 per cent stake in Wintech while the remaining 20 per cent stake will be held by its Italian joint venture partner Geoplast S.p.a. Wintech in turn will acquire Italtech, an existing technology partner for Windsor.

Italtech manufactures injection moulding machines for moulding of plastics. It is the owner of 'Two-Platen' technology used extensively in the injection moulding industry, especially for production of large size plastic components for automobiles. Its clientele portfolio includes Fiat, Renault, Nissan and their tier I vendors.

This acquisition will enable Windsor to upgrade and develop advanced technology machines to meet European standards and also provide access to the global auto majors who are setting up their operation in India.

Windsor Machines was set up in 1964 under collaboration from R.H. Windsor of U.K. In 1984, it became a part of worldwide operations of Klockner-Werke, Germany and renamed as Klockner Windsor India Limited. It was acquired by Dilip Piramal (of VIP Group) in 1994 and later renamed as Windsor Machines.

The firm came under Kundalias few years ago and has become a key player in the plastic processing machinery industry.

(Source : http://www.vccircle.com/news/engineering/2013/04/25/windsor-machines-acquire-italian-auto-component-firm-italtech)

Auto component sector: Buyer-seller meet held

ACMA, the apex body of the automotive component industry, recently organised a buyer-seller meet in the city. The event, aimed at providing business opportunities to small auto component manufacturers especially in Tier 2 and Tier 3 companies, received an overwhelming response.

Surinder Kanwar, president, ACMA said, "Supply Chain Committee of ACMA initiated the drive to handhold the Tier-2/3 companies through buyers-sellers business meets. Sandeep Balooja, chairman, ACMA (Western Region) said, their endeavour has been to provide value added services to the auto component industry in the

region."

Rattan Kapur, chairman, ACMA-Supply Chain Committee said, the buyers-sellers meet provides a platform for Tier-1 companies to display components for which they need suppliers and for exploring new opportunities.

Competition panel nod for Denso-Pricol merger

OUR BUREAU

NEW DELHI, MARCH 28:

Japanese auto component maker Denso Corporation’s proposed joint venture with Pricol has been cleared by the Competition Commission of India.

The Coimbatore-based automotive instruments and precision engineering company Pricol plans to transfer its Denso Technology Instrument Cluster undertaking to a wholly-owned subsidiary, Pricol Components Ltd.

As per the agreement, upon the transfer, Denso will acquire 51 per cent stake in PCL.

“The proposed combination is not likely to have an adverse effect on competition in India and, therefore, the Commission hereby approves the proposed combination under... (Competition) Act,” CCI said in its order.

Denso Technology Instrument Cluster Undertaking services companies manufacturing four-wheeler personal passenger vehicles from locations in Coimbatore and Gurgaon. Pricol manufactures an array of auto parts, including instrument clusters, speedo cables, sensors, accessories and sub-assembly components, oil pumps, idle speed control valve assembly and vehicle security systems.

Its clients include players in the auto space, including two-wheeler and HCV makers, and a major portion of its business comes from the instruments segment.

The CCI said “there is no horizontal overlap between the products of Denso and Pricol” as neither the Japanese firm nor its affiliates in India are engaged in the business of manufacturing/supply of instrument clusters for four-wheeler personal passenger vehicles, two-wheeler vehicles and commercial vehicles.

Denso had approached the CCI for its approval following the joint venture agreement on February 14.

bindu.menon@thehindu.co.in

Keywords: Japanese auto, component maker, Denso Corporation, Pricol

(Source : http://www.thehindubusinessline.com/companies/competition-panel-nod-for-densopricol-merger/article4558830.ece)

Denso cuts Pricol stake to 4.6%

M Allirajan, TNN | Apr 4, 2013, 03.13AM IST

COIMBATORE: Japanese auto parts manufacturer Denso Corporation has offloaded 71.1 lakh shares in city-based auto instruments maker Pricol on Wednesday. The off-market transaction would fetch Denso, a technology collaborator to Pricol for several years, about Rs. 11 crore at current market prices.

With this, the Japanese major has cut its stake in Pricol from 12.5% to 4.6%. This comes close on the heels of Pricol Holdings buying 4.67% stake in the company. The Denso stake sale comes at a time when Pricol is actively trying to bring in multiple partners for growing its business.

Pricol had tied up with US-based Johnson Controls Enterprise for its Pune plant last March. Only the auto instruments business for cars, SUVs, MPVs and Bajaj's two-wheelers being done out of the Pune plant, which is estimated to generate Rs. 110 crore in revenues, was transferred to the joint venture (JV) company in which both the partners have equal stakes. The Pune plant caters to the requirements of Mahindra and Mahindra (M&M), Tata Motors, GM India and Bajaj Auto.


Interestingly, the proposed JV between Denso and Pricol for four-wheeler personal passenger vehicles was approved by the Competition Commission of India (CCI) only last month.

The proposed JV involved the transfer by Pricol, of its 'Denso Technology Instrument Cluster Undertaking' relating to the four-wheeler personal passenger vehicles, situated at Coimbatore and Gurgaon to Pricol Components, a wholly owned subsidiary of Pricol. Denso would acquire 51% stake in Pricol Components after the transfer.

Pricol, which closed 2011-12 with Rs. 965 crore in revenues, operates six plants across Coimbatore, Pune Manesar and Pant Nagar. The company's stock ended 1.65% higher on the NSE in a weak market.

(Source : http://timesofindia.indiatimes.com/business/india-business/Denso-cuts-Pricol-stake-to-4-6/articleshow/19371949.cms)

Auto component industry's revenue growth to remain weak: ICRA

Source: IRIS (01-APR-13)

The Indian auto and auto components industry is currently facing its most formidable challenge -  that of slowing demand and that too across the board.

"After a frenzied period of 2009-10 and 2010-11 when all automotive spots - domestic OEMs, exports and replacement market - shone bright, the year 2011-12 marked the commencement of a slowdown phase as volumes in the domestic Passenger Vehicle (PV) and Medium & Heavy Commercial Vehicle (M&HCV) segments began to stutter. If the year 2011-12 was bad, the year 2012-13 has turned out to be worse as other segments too including the domestic Two-Wheeler (2W) segment as also exports to overseas OEMs and tier-1 players have come into the grips of the slowdown. While the revenue growth of diversified auto component manufacturers had been steady till Q1 2012-13, the across the board weakness in demand witnessed during the last two quarters has tended to neutralize this structural advantage otherwise enjoyed by such players," ICRA Research said.

On the exports front, auto component supplies to Europe had already been witnessing sluggish growth over the last few years, but steady expansion in demand for Light Vehicles and Commercial Vehicles (CVs) in North America was adequately offsetting the overall exports weakness, it said. However, starting Q2 2012-13, auto parts exports to USA also have declined significantly, particularly related to parts meant for CV applications due to sharp contraction in demand (partly due to inventory correction due to build-up during H1CY2012). Component suppliers to the domestic replacement market have also been experiencing moderation in growth, but this segment, as expected, has been relatively more resilient if not fully immune. As per our sample of 35 publically - listed auto component manufacturers, the average revenue growth of these select entities (during the last eight quarters) has been steadily declining with YoY growth being lower in each passing quarter since Q1 2011-12.

''Yet, the revenue growth of select auto component manufacturers has been much higher than the industry’s on the back of market share gains, favourable change in model mix, rise in content per vehicle, besides revenue accretion due to corporate actions such as acquisitions and amalgamations. Over the short term, we expect the auto component industry's revenue growth to remain weak in the absence of immediate demand triggers for end-users across domestic automotive segments, besides an uncertain global economic environment resulting in slow automobile demand recovery and hence faltering export volumes,'' it added.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.

(Source : http://www.myiris.com/newsCentre/storyShow.php?fileR=20130401164547715&dir=2013/04/01)