Comments
CK Birla Group firm National Engineering Industries (NEI) said on Tuesday that it is planning its first overseas acquisition in its core business of bearings manufacture. This will help it expand its international presence.
“We are looking to make our first acquisition overseas. We are looking at companies in Europe and US, which have an annual turnover in the range of Rs 100-500 crore,” Mr Rohit Saboo, President and CEO, NEI, said.
The company, which sells bearings under the NBC brand to a majority of domestic automakers, has unveiled a new look with which it expects to further penetrate the global markets. It has also increased its R&D spend on the back of such a plan.
Rs 500-cr expansion
NEI has announced “phased investment” of Rs 500 crore for expansion over the next five years, part of which will be for its fourth plant.
“This will include at least Rs 150-200 crore for setting up a new facility in Karnataka or Gujarat. The plant will be flexible in terms of capacity. Going forward, we can double our overall capacity in the next five years,” Mr Saboo said.
The Rs 1,051 crore Jaipur-based NEI’s current capacity is to make 80 million bearings a year across its three plants. With a market share of 24 per cent, it is the second-largest supplier of the component to companies such as Hero MotoCorp, Maruti Suzuki, Tata Motors, Bajaj Auto and Daimler (Germany).
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.