The Hindu Business Line : Timken seeks Govt nod to transfer holding in TIL to Mauritius unit

The US-based Timken Company, a manufacturer of highly engineered bearings, alloys, specialty steel and related components, has sought Government nod to transfer its 80 per cent holding in Timken India Ltd to Timken (Mauritius) Ltd, in an effort aimed at consolidating its Asian investments.

Timken India Ltd (TIL) — where 19.98 per cent stake is with the general public — is primarily involved in manufacture of tapered roller bearings, and caters to rail and automotive segments.

TIL was incorporated in 1987 as a joint venture between Timken and Tata Iron and Steel Company Ltd (TISCO), and subsequently, in 1999, Timken acquired the equity and preference shares held by TISCO in TIL.

The products currently manufactured by TIL include automotive and industrial single row case carburised tapered roller bearings, automotive single row case carburised tapered ‘unit bearing’ assemblies, railroad wheel cartridge bearing components and greased and sealed bearings, among others.

Timken, in 1998, established a wholly owned subsidiary in India — Timken Engineering and Research India Pvt Ltd – to undertake research and engineering services for Timken and its clients.

In 2006, the company obtained FIPB approval for establishing another subsidiary in India — Timken India Manufacturing Pvt Ltd — for primarily establishing units in Special Economic Zones (SEZs) and other areas to undertake manufacturing activities.

Sources said that the company has decided to hold its manufacturing investments in the Asian region through Timken (Mauritius) Ltd.

“Timken plans to hold its stake comprising 5.09 crore shares constituting 80.02 per cent in TIL, through the Mauritius subsidiary. The purpose of the transfer would be to consolidate the company’s investments in manufacturing entities,” sources said, adding that the transfer would not lead to any change in management and control of TIL.

The company, however, could not be contacted for comments.

More Stories on : Outlook | Bearings | tings & Forgings

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