Amtek Auto to merge subsidiary
The Amtek group is planning to merge its automobile component-making arm, Amtek India, with its flagship company, Amtek Auto, reports Vyas Mohan.autos Updated: Sep 12, 2007 23:10 IST
In an attempt to improve traction in the global market and bring in economies of scale, the Amtek group is planning to merge its automobile component-making arm, Amtek India, with its flagship company, Amtek Auto.
Sources close to the development said the finance and marketing functions of both the companies already have an integrated structure. The group is now keen to centralise the business model to put the company on a better footing in order to carry out future expansion plans.
When contacted, Amtek group CFO S Singhi said, "We are still exploring various options under the guidance of Citigroup. We have already achieved a certain level of economy in terms of scale of operations. The idea is to integrate promoter interests and thereby enabling ourselves to carry out big ticket deals in the future. This should be done in the next four-five months."
Singhi added the restructuring would be carried out in such a manner so that the new entity gets maximum market capitalisation. According to analysts,
Amtek Auto currently holds 7.4 per cent in Amtek India. The company is in consolidation mode in the last one year, and has acquired Zelter of Germany and J L French's (Witham) Ltd (JLF) manufacturing facility in the UK.
The company has already been working on getting two of its subsidiaries, Amtek Siccardi and Benda Amtek. Amtek Auto’s revenues were close to Rs 960 crore in December 2006.
Amtek group is a manufacturer of automotive components and assemblies with production facilities located across North America, Europe & Asia. The group's manufacturing capabilities include sub assemblies, castings, forgings, complex machining and assembly.