The Hindu Business Line : Autoline acquires 51% in Stokota

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Pune Feb. 26 Auto component company Autoline Industries Ltd has signed a memorandum of understanding with special vehicle manufacturer Stokota NV to acquire 51 per cent stake in Stokota's global operations for approximately Rs 66.8 crore in cash and equity.

Both companies are completing the due diligence to execute the agreement over the next 90 days.

The merger of Stokota NV (Belgium, France and Poland), Stokota China and Stokota India with Autoline will help form a conglomerate that will be a global leader in the manufacture of high-value, low cost automotive components and transport solutions.

Global leader

Mr Gopal Patwardhan, Director of Autoline, said that the effect of the acquisition will be reflected in the 2007-08 fiscal, with the consolidated revenue from IAL operations and the acquisition touching Rs 700 crore with a profit of Rs 60 crore.

Autoline, which has five facilities in Pune, is a design engineering and manufacturing solutions provider focused on sheet metal assemblies and formed tubular products. It went public a month ago and expects its stand-alone revenue this year to be Rs 210 crore.

The figure next year, Mr Patwardhan said, will be Rs 450 crore, with a net profit of Rs 36 crore. Though, there are no firm orders as yet, the company has also projected an additional revenue of Rs 80 crore from exports to Stokota's European operations.

Stokota, which manufactures tippers, tipper trailers, cement bulkers, tankers for fuel, LPG, bitumen and chemicals amongst other special purpose vehicles expects its top line this year and the next to be Rs 400 crore and Rs 490 crore, respectively.

More Stories on : Mergers & Acquisitions | Automobile Components | Cars

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