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Sudha Menon

Pune , Nov. 18

Uma Precision Ltd, a Pune-based engineering solutions provider for the auto industry, is in the process of charting out a growth plan, which will see it expanding its footprints across markets in the US and Australia over the next few months. Uma Precision, which acquired an Australian company early this month, is now gearing up for more acquisitions with a kitty of Rs 80-100 crore, Mr R.Z. Kankaria, Managing Director, told Business Line.

"We have made offers to two companies in the US and yet another established and profit making company in Australia, and hope to tie up with at least one in the next two months," Mr Kankaria said.

The offers are for a company in a related business with a top line of $20 million and another company manufacturing fasteners, with a top line of $25 million. "Our aim is to be at least a Rs 500-crore company in two years," he pointed out.

New areas

The company manufactures over 1,000 different parts, including precision assemblies, systems, automotive and electrical components, and has seven plants located across Maharashtra, Karnataka and Tamil Nadu.

With a client list that includes Bajaj Auto, Tata Motors, Piaggio, Carraro, L&T, Emerson and Eaton, among others, the company wants to tap the domestic market and foray into newer areas.

The recent Australian acquisition will give it access to high-speed multi spindles and an existing brand name, Mr Kankaria said, adding that the company is now looking to acquire existing businesses with not just assets but long-term contracts.

With its automobile business well established, Uma Precision is now in the process of foraying into new areas such as electricals, in which it recently implemented a contract for L&T. Meanwhile, it has signed a licence agreement for a zinc aluminium flake coating project in Pune with Germany's Doerken MKS System GmbH. The company is also in the process of entering into a joint venture with another player in the market, with whom it plans to form a jointventure for surface coating technology, Mr Kankaria said. The surface coating agreement with the German company envisages setting up of plants across north, south and central India, where large companies can utilise the facilities. Also on the anvil, is its CNC capacities and a foray into special cold forgings for the auto and electrical industry. The company is also revisiting its plans in the domestic market, where in addition to acquisitions, it will also grow by expanding its consumer base. While, it is currently supplying over 500 parts to Bajaj Auto, it is now readying to tap other players in the two- and four-wheeler market. "We also plan to position ourselves as suppliers to the large component sourcing arms of global entities who are scouting in India," Mr Kankaria said. The company started growing significantly a decade ago from Rs 1 crore in 1995-1996 to Rs 100 crore in 2005-2006. It has already touched the Rs 67-crore mark in the first half of the current fiscal and exports have touched Rs 8 crore in this period. "We expect to touch the level of Rs 120 crore revenues by the end of this fiscal and expect export of Rs 20 crore," Mr Kankaria stated.

More Stories on : Outlook | Overseas Investments | Automobile Components

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