Showing posts with label Forging. Show all posts
Showing posts with label Forging. Show all posts

Friday, February 17, 2012

Adhunik Metaliks in talks to sell forging arm Neepaz V Forge to Amtek Auto

17 FEB, 2012, 06.13AM IST, M V RAMSURYA & RAKHI MAZUMDAR,ET BUREAU



MUMBAI/KOLKATA: Steel manufacturer Adhunik Metaliks is in advanced talks to sell its unlisted forging subsidiary to automobile component maker Amtek Auto for Rs 230 crore, people close to the development said.

The subsidiary, Neepaz V Forge, manufactures forged products for automobile players such as Tata Motors, Ashok Leyland and Mahindra & Mahindra.

The deal size includes Rs 160 crore debt that Neepaz has on its books, these people said.

"Adhunik has now entered the final lap of negotiations with Amtek," one of the people quoted above said, adding that the deal is likely be finalised by April.

Adhunik will retain a minority stake in the forging unit and continue to supply raw materials from its Rourkela unit in Orissa to the forging plant located in Nagpur in Maharashtra, he said.

Adhunik and Amtek refused comment.

Kolkata-based Adhunik has been seeking a buyer for Neepaz for some time and had earlier engaged in discussions with German steel maker Thyssenkrupp and Japan's Sumitomo Corporation. Adhunik is selling the forging unit as it wants to focus on its core business, another person aware of the negotiations said.

"For the past six to eight months, Adhunik has been looking for a joint venture partner who can expand and grow the forging business," this person said. "The group is willing to offer the new partner management control to run the business as forging is not a core area for Adhunik."

Amtek Auto, which is India's second largest forging company after Bharat Forge, has been looking for local units to grow its capacity at a time when slow auto sales in the fiscal third quarter shaved off valuations of most Indian companies. Analysts say prospects have brightened for a strong fourth quarter with car sales in January growing 9% and sales in February being robust so far.

Shares of both Adhunik and Amtek gained on Thursday, a day when the country's benchmark stock index, Sensex, ended marginally lower. While Adhunik rose 1.9% to close at Rs 54.15, Amtek was up 2% at Rs 130.95 on the Bombay Stock Exchange. Adhunik has surged 24% in the past month, while Amtek has risen 23%.

(Source : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/engineering/adhunik-metaliks-in-talks-to-sell-forging-arm-neepaz-v-forge-to-amtek-auto/articleshow/11920931.cms)

Monday, January 9, 2012

Raymond To Acquire Majority Stake In Trinity India

By : Irfan Khan | 5 January 2012


Raymond is acquiring majority stake in forged auto components maker - Trinity India Ltd through it's subsidiary Ring Plus Aqua Ltd.

Pune based Trinity India Ltd was incorporated in January 1974 by JC Basu, Ranjan Banerjee and YC Kurle.The company has raised equity funding from Tata Investment Corporation Ltd (erstwhile - Investment Corporation of India) and Altina Finance Pvt Ltd. Tata Investment holds 8.8% stake in Trinity while Altina has 6.7% stake.

Trinity India has five manufacturing units, four located at Bhosari and one at Shikrapur with a forging capacity of 12,500MTPA. Trinity India exports more than 60% of its total sales and it's clientele includes Tata Motors, Maruti Suzuki, Ford India, Force Motors, Turbogears and Iljin Auto Motors among others.

Trinity Operational Performance

(In Rs. Mn)20112010
Revenue847.30647.90
PAT5.802.02
Share Capital67.7267.72
Reserves163.05161.13
Debt214.91242.0


Trinity had filed a DRHP in 2008 but the IPO never happened. Trinity was looking to raise funds for expanding the forging capacity.


Ring Plus Aqua Ltd manufactures ring gears, flex assmeblies and precision sheet metal components. It manufactures its automotive components at two separate locations in integrated factories at Sinnar near Nasik. The company was was acquired by Raymond in July'05 through it's wholly owned subsidiary Scissors Engineering Products Ltd.

Earlier this year, Ring Plus announced it's plans to invest R200Cr to invest it's auto components business which included entering the forging segment through acquistion.

In a seperat transaction, Raymond sold it's stake Rayves Automotive Textile Company Private Limited to Japan based T B Kawashima Company Limited.

Rayves Automotive Textile was a JV between Silver Spark Apparel Ltd, a subsidiary of Raymond and Treves S.A of France offering printed seating fabric for TATA Motors' - Magic IRIS.

(Source : http://www.dealcurry.com/2012015-Raymond-To-Acquire-Majority-Stake-In-Trinity-India.htm)