The Hindu Business Line : Ruias acquires UK automotive firm

KOLKATA: Firming up its plans to enter into the auto parts business, the Ruia Group, which owns tyre maker Dunlop India, has acquired UK-based Schlegel Automotive Europe and may also invest $ 15 million to set up a plant in the country.

The city-based company has acquired 100 per cent stake in the British automotive sealing company which supplies parts to several leading global auto companies.

"Keeping in mind the growing demand in the automotive sector, we acquired the assets of this unit which is one of the top three global sealing units," Ruia Group Chairman, Mr Pawan Kumar Ruia told reporters here.

On the funding part of the plant, Mr Ruia said it was part funded through a $ 12-million loan. "Schlegel will part-fund this investment," he said.

The Indian arm, called Schlegel Automotive India Pvt Ltd, will be a 100 per cent subsidiary of Schlegel Europe. "The mother plant in India will carryout out the mixing, the extrusion work will be carried out and the finishing lines can be done at variou s units situated near customer bases.

However, we are yet to finalise the location," said Schlegel Europe Managing Director of Global Operations, Mr David Boynton. This is an overseas acquisition and the sixth since 2003 when it acquired PSU Jessop & Co. - PTI

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