Opportunity To Acquire Auto Components Processing Company
About Business
A leading tier-2 auto ancillary company, established over 30 years ago & part of a Rs 750 crore old, reputed business group, catering to tier-1 customers, including one of its group companies.
The company processes and treats components for fuel systems of 2-, 3-, and 4-wheelers, as well as other high-precision products for various industries.
Performing machining, brazing, anodizing, treating/plating, and assembly of sub-contracted die-casting for its customers.
Clientele type
Suprajit, Aisan, Ucal Fuel Systems, TVS, Bajaj, and more.
Premises
OWNED
Premise Size: 35,000 sqft
Market Value (in INR): 15.00 Cr
About 4,100 sqmts of shop floor across 2-owned & 2-leased premises (including 1 for trading business).
Asking Price Includes
Entire 100% shareholding of the private limited entity.
Reason
The group is planning to focus on fewer lines of larger businesses and hence proposing to divest its stake in this company.
More Details
The company has a wide range of machinery to handle complex Sub-Assembly Parts, including Brazing Furnaces, CNC Lathes, CNC Pipe Bending, Vertical Machining Centers, Precision Measuring Instruments, and Semi/fully Automatic Planting shops.
Strong revenue growth in FY2021 to over Rs 23 crores from Rs 17 crores in FY2020 despite the adverse impact of COVID and drop in demand, coupled with positive EBITDA and cash profits.
This was mainly due to economies of scale and improved efficiency resulting from higher automation.
The overall profitability can improve further with a reduction in corporate allocation/overheads.
Growing revenues from existing clients, full integration of production capabilities for large customers, and new products like rear axle for EVs, Horn and Lift vertical will lead to higher topline going forward.
A strong order book will help the company achieve Rs 50 crores revenue by FY2025 with minimal investment of Rs 2.5 crores for capex and Rs 2 crores for working capital.
Keywords
Business Tags
₹10 to ₹200 Cr
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