The Hindu Business Line : Precision Group buys out UK partner in joint venture

The Precision Group, manufacturer of camshafts, has acquired its UK partner's stake in Clancey Precision Components Private Ltd (CPCPL), Mr Yatin Shah, Managing Director, Precision Group of companies, told presspersons here today. The UK partner which held 51 per cent stake in the venture had run into financial distress about one and half years ago, which eventually led to it being wound up, he said. With the acquisition, the Precision Group would be able to engage in direct marketing abroad as the joint venture agreement restrained it from doing so until now, Mr Shah said. The group which is a supplier to General Motors, Ford, Tata, Hyundai etc. has recently won orders valued at Rs 25 crore from BMW and Porsche for supply 4,40,000 camshafts of different specifications, per annum.

He noted that Precision Group is also planning to set up a small outfit near the Hyundai plant in Chennai at a cost of of Rs 20 crore. He said it might create other machine shops at other customer locations, if required.

Mr Shah said the company's investment plan of Rs 100 crore would be raised through debt and equity and noted that of this, it has already secured Rs 30 crore as debt for investment.

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