Rico Auto To Sell Continental Rico JV Stake To Partner

Rico Auto Industries is selling it's 50% stake in Continental Rico Hydraulic Brakes India Private Limited to it's JV partner Continental Automotive Holding Netherlands BV, a Continental Group Company. The stake sale is subject to approval of Reserve Bank of India.

Rico and Continental had entered into a JV in 2007 to build a hydraulic brake systems plant in India in a two step approach. Rico Hydraulic Brakes produces calipers for front and rear axles, drum brakes, master cylinders, brake boosters and load sensing proportioning valves for vehicles of all classes.

Rico Industries, along with it's subsidiaries and JVs manufactures and supplies auto components to auto OEMs across the country. It's clients include Hero MotoCorp Limited, Honda Motorcycle and Scooter India Private Limited, Maruti Suzuki India Limited and TataCummins Limited.


Rico Auto on BSE

Last year in December, it sold it's entire stake in JV - KRP Auto Industries Limited to JV partner Kailash Royal Premium Projects Private Limited for R20.3Cr. KRP Auto Industries was incorporated in 2010 as a manufacturer of automobile components at Bangalore. 


Rico’s other JV companies are FCC Rico Ltd, Rico Jinfei Wheels Limited and Magna Rico Powertrain Private Limited.


Last year, Continental AG acquired Modi Rubber for #3.87Mn.


(Source : http://www.dealcurry.com/20120228-Rico-Auto-To-Sell-Continental-Rico-JV-Stake-To-Partner.htm)

Continental AG to invest over Rs 800 crore in India by 2013

8 JAN, 2012, 12.09PM IST, PTI


NEW DELHI: German auto component-maker Continental AG will invest over Rs 800 crore in India over the next two years to strengthen its operations in the country, as well as make an entry into the radial tyres segment.

While the firm will spend Rs 500 crore to ramp up its electronics division and enhance its R&D capabilities, it will pump in over 50 million euros (about Rs 330 crore) to get into the radial tyre segment. The company acquired Modi Tyres for 18.5 million euros last year.

"We will invest Rs 100 crore every year on electronics equipment. This will be for introducing new products from our Bangalore plant and supporting new customers," Continental AG Member of the Executive Board (Division Interior) Helmut Matschi told PTI at 11th Auto Expo here.

In addition, the auto major will invest Rs 150 crore every year on its R&D division, he added.

Continental Automotive Components (India) currently employs 800 people in its R&D wing.

"We will invest 50 million euros at Modi Tyres' plant at Modipuram, in UP. We will launch radial tyres for both commercial and passenger vehicles from the plant by 2013," Matschi said.

The company will commence production of radial tyres with an initial capacity of 8,00,000 units a year.

Continental Automotive Components (India) Managing Director Claude d'Gama Rose said the company plans to increase the production capacity of cross-ly tyres from the plant to 10 lakh units annually from 5 lakh units at present.

Asked about its workforce, he said the company will hike its manpower strength at Modipuran by 800 by next year.

The company has six more manufacturing facilities at Bangalore, Manesar, Pune, Gurgaon, Sonepat and Kolkata for production of various automotive and non-automotive products for the Indian market.

Continental Automotive Components (India) had registered a sales revenue of about 200 million euros in 2011 and is expecting to grow "faster than global operations", Matschi said.

Globally, the company witnessed growth of about 11 per cent in revenues last year to 29.5 billion euros.

(Source : http://economictimes.indiatimes.com/news/news-by-industry/auto/auto-components/continental-ag-to-invest-over-rs-800-cr-in-india-by-2013/articleshow/11411142.cms)