Mumbai, July 12
RAYMOND Ltd has announced plans to acquire a controlling interest in an auto component manufacturing company, Ring Plus Aqua Ltd (RPAL), through a wholly owned subsidiary company, Scissors Engineering Products Ltd.
According to an official statement, the price for the 69.17-per cent stake to be acquired from the institutions/funds and some of the original promoters is Rs 21.05 crore.
Raymond has a presence in the engineering files and tools space through its division JK Files & Tools.
According to the statement, the acquisition of RPAL would give the group a platform to capture the opportunity emerging in the Indian auto components industry by leveraging its existing engineering skills.
RPAL is an unlisted company with a paid-up equity share capital of Rs 7.61 crore. It is engaged in the manufacture of starter ring gears and integral shaft bearings in facilities at Sinnar near Nashik in Maharashtra.
The statement quoting Mr Gautam Hari Singhania, Chairman and Managing Director, Raymond Ltd, said: "The group's strategy is to become a key player in the Indian engineering industry which has an India advantage, and, in which, the group already has a global presence through its existing engineering files and tools division."
RPAL recorded a turnover of Rs 63.33 crore last year and its customer portfolio includes OEMs and tier I suppliers in the domestic and international markets, the statement added.