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Our Bureau

Chennai, Dec. 3 Hosur-based Harita Seating Systems Ltd has acquired the Polyflex Group of companies for an undisclosed sum.

This acquisition will give Harita an entry into passenger car segment through tier-1 companies.

Harita makes seats for two-wheelers, commercial vehicles, tractors and buses. Polyflex supplies polyurethane foam for seats to Tata Johnson, in Pune and Chennai, and Dymos India (formerly known as Hanil Lear) in Chennai. It is a tier-2 supplier to Tata Motors, Ford and Hyundai. Polyflex has manufacturing plants in Bangalore, Chennai and Pune. Besides, it also has a fabrication unit called Polyflex Engineering in Bangalore.

Harita has acquired Polyflex’s plants in Bangalore and Chennai and the movable assets of Polyflex’s Pune plant. It is also taking over Polyflex Engineering.

Sources in Harita Seating told Business Line that the company would continue to be a tier-2 supplier for passenger car segment. Once the Polyflex acquisition process is completed, it will come under Harita Fehrer, which is a 51:49 joint venture that Harita Seating in September established with F S Fehrer Automotive GmbH of Germany. Fehrer is well represented in passenger car seats manufacturing in Europe as tier-2 supplier, sources said. Harita Fehrer will manufacture two-wheeler seats, micro cellular urethanes, polyurethane composites, foaming for driver seats and passenger seats for buses, sources added.

The Chairman and Managing Director of Polyflex Group, Mr Balram U. Nichani, said he decided to sell the company as the next generation was not inclined to pursue automotive business.

Harita Seating Systems has manufacturing facilities in Hosur, Ranjangaon near Pune and at Nalagarh in Himachal Pradesh. Till 2002, the company was called Harita Grammer Ltd as it was incorporated in 1986 as a joint venture with Grammer AG of Germany. In 2002, it terminated the joint venture and became Harita Seating Systems Ltd.

More Stories on : Mergers & Acquisitions | Automobile Components

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