Ashok Piramal firm plans Hungarian buy
The company is acquiring Bakonyi, a manufacturer of wipers and windscreen-cleaning equipment for cars and trucks, reports Suprotip Ghosh.business Updated: Jun 25, 2007 22:48 IST
The Ashok Piramal group is acquiring Bakonyi, a Hungarian manufacturer of wipers and windscreen-cleaning equipment for cars and trucks. A formal announcement will be made on Tuesday.
The purchase will be made through PMP Auto, a group company that has a factory in Satara, Maharashtra. PMP Auto has a turnover of Rs 50 crore, and supplies alternators and starter motors to carmakers. The consideration for the deal is expected to be in the range of Rs 50-75 crore. KPMG was the adviser for the transaction.
Bakonyi is based in Hungary and has Suzuki as one of its major clients in Europe and elsewhere in the world. The company was established in 1945 and currently employs 146 people in its factories in Europe.
Many of Bakonyi’s products are fitted in Suzuki’s cars and that creates an added advantage for PMP Auto. The new products in Bakonyi’s portfolio will now enable PMP Auto to strengthen its presence in India.
The Hungarian company, which was established in 1945, has a research and development unit and holds various patents in wiper technology. “We are in talks with Indian automobile companies to do business based on Bakonyi’s technology,” said a source close to the Ashok Piramal group.
The acquisition would put PMP Auto in a position to expand its operations in Europe, given its large footprint in the continent.
Banker Holdings, the present parent of Bakonyi is exiting the business since it has decided to focus on real estate and hospitality.
The Ashok Piramal group has set a target of Rs 800 crore for PMP Auto by the year 2012. Sources said the company might look at various options to raise funds for its expansion plans. To that end, the company plans to enter the Chinese market to set up a sourcing base.