Financial Daily from THE HINDU group of publications
Thursday, Sep 23, 2004
Financial Daily from THE HINDU group of publications Thursday, Sep 23, 2004 |
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Corporate
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Mergers & Acquisitions Prabha Engineers scouting for acquisitions Our Bureau
Chennai , Sept. 22 PRABHA Engineers Ltd, a Hosur-based SME vendor of Ashok Leyland, is on the lookout for acquisition opportunities, the company's Chief Executive, Mr C. Siva Kumar, told Business Line on Wednesday. Prabha makes Front End Structures (FES) for Ashok Leyland's trucks and is a tier-I supplier to the truck manufacturer. It achieved a turnover of Rs 21 crore last year. In the last couple of years, the company has grown in tandem with Ashok Leyland's fortunes; its turnover in 2001-02 was only Rs 8 crore. Mr Siva Kumar said the company was looking to buy vendors who are registered with automobile OEMs, adding that talks were on with a few. After having been a single customer company for nearly two decades, Prabha now wants to explore the scope for selling to other OEMs as well. But getting a fresh vendor registration from an OEM is a time-consuming process. That is why Prabha wishes to buy a company that is already a registered vendor, for which "I am prepared to pay a premium," he said. Alongside, the company wants to deepen its association with Ashok Leyland, by offering more components, such as fuel tanks.
More Stories on : Mergers & Acquisitions | Automobile Components
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