Financial Daily from THE HINDU group of publications
Tuesday, Nov 16, 2004

Cross Currency

Group Sites

Corporate - Alliances & Joint Ventures

Escorts Auto scouting for foreign partner

Neha Kaushik

New Delhi , Nov. 15

ESCORTS Auto Components Ltd (EACL), the erstwhile subsidiary of Escorts Ltd, which was acquired by eight employees in June this year, is in talks to offload stake to a foreign partner.

According to Mr Bharat Caprihan, CEO, EACL, the company is currently in negotiations with an Italian and a Japanese firm to attain new technology.

"This will help us to diversify into new product segments. We might start another company to facilitate the same. The agreement is expected to materialise by December-end," he said. EACL, which manufactures carburettors, oil pumps and clutches for two-wheeler companies, is also in the process of developing specific products for the Chinese market. "There is ample scope for exports to China, especially with regards to carburettors. We have already opened an office in China to study the market opportunities.

"Our business plan encapsulates both expanding the product range and markets. We are also studying the possibility of manufacturing certain components for four-wheelers as well," Mr Caprihan said.

The company claims to have achieved financial success since its takeover this year and is expecting sales in the region of about Rs 30 crore in the next financial year. Its key clients include Hero Honda, Yamaha, Bajaj Auto and Royal Enfield.

Meanwhile, the company's name is also set to change soon to Eco Auto Components Ltd in keeping with the change in shareholding.

Earlier in June, in a rare move in the corporate world, the CEO of EACL along with seven other employees had acquired Escorts Ltd's 78 per cent stake in the company. The balance 22 per cent of the public limited company is owned by about 2,800 shareholders.

More Stories on : Alliances & Joint Ventures | Automobile Components

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Media Video gets Rs 10-cr order from Haier Group

SBL conducting trials for homeopathic drugs
AHLCON bags Rs 6.5-cr order
ICSI for making secretarial standards must for listed cos
ITC Centre bags Platinum Green Building rating from US agency
Ranbaxy, other drug cos face 94.5 m claim in UK
Converting Rs 52-cr dues into equity — CIAL, Hudco face-off drags on
Temasek arm picks up 6.9 pc stake in Satnam Overseas
Korean major to set up chip facility in Hyderabad
The Park plans one more hotel in Bangalore
Escorts Auto scouting for foreign partner
CUMI eyes China, Dubai for growth
Rise in number of cos registered in Sept

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line