The Hindu Business Line : Amtek Auto to bring 2 group cos under fold

The Amtek group, an auto components manufacturer, is rapidly going forward with its consolidation strategy under which it plans to bring in all group companies under Amtek Auto.

Amtek Auto is set to acquire 100 per cent stake in group company, Amtek Siccardi, and 96 per cent stake in Benda Amtek.

The stake will be acquired from the promoters of the Amtek group.

Amtek Auto currently holds 14-15 per cent stake in Benda Amtek; four per cent is held by the Japan-based Benda and the rest by the promoters of the Amtek group.

Benda Amtek and Amtek Siccardi have combined revenues of Rs 350 crore, which will be added to Amtek Auto's consolidated sales in the fiscal ending June 2006.

This is expected to boost Amtek Auto's revenues to Rs 3,000 crore in the current year.

Amtek Auto had a turnover of Rs 1,800 crore last year.

The current year's revenues will also be boosted by Amtek's acquisition of the Germany-based Zelter GmbH, which has revenues of about Rs 600 crore.

The step is part of a restructuring process under which all the group subsidiaries are being amalgamated under Amtek Auto, said Mr S. Singhi, CFO, Amtek group.

Subsequently, the group plans to merge Amtek Auto and Amtek India, a step likely to happen in 2007-08.

Amtek has appointed Ernst & Young as advisors for the restructuring at the group.

Analysts said that the amalgamation, apart from giving Amtek Auto a large scale for operations, will result in substantial costs savings for the company.

It will also aid the company's aggressive acquisition strategy.

The Amtek group has acquired about seven companies over the last four years. Zelter is the latest acquisition.

More Stories on : Restructuring | Automobile Components

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