The Hindu Business Line : Rico Auto in talks to acquire 2 European cos

LEADING auto components maker Rico Auto Industries on Wednesday said it is currently in talks to acquire two component firms based in Germany and the UK.

"Both companies are manufacturers of niche products. We should take a decision about the purchase in the next two months," Mr Arvind Kapur, Managing Director of Rico Auto Industries, said.

In recent months, many Indian component firms, including Amtek and Bharat Forge, have make acquisitions outside India, mainly in Europe.

Incidentally, Rico is also in the fray for the purchase of Daewoo India's engine, transmission and axle unit at its Surajpur facility.

Meanwhile, Rico also intends to spend about Rs 70 crore this year to expand capacity at its Gurgaon and Daruhera (Haryana) plants and also plans to set up a greenfield project in Thailand at an initial cost of about $3 million. The company expects its 2004-05 sales to grow more than 30 per cent on the back of growing domestic demand and exports.

More Stories on : Mergers & Acquisitions | Automobile Components

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