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Rockman Industries, auto components company of the Hero Group, which has bought an Indo-British company for about ₹100 crore, plans to more than double the revenues through organic and inorganic expansion over the next five years.
The company has acquired a majority stake in Moldex Composites, a Gujarat-based design and manufacturing company, which provides advanced carbon composites.
The company was founded by motorsport veterans Parag Rajda and Robert Neumann in 2010 and it has been working with USA’s premier motor racing series.
The rationale behind the acquisition, which was completed in December 2016, is to support the company’s diversification plans towards aerospace and motorsports as also to get ready for future technological changes in its existing auto business. “Globally, there is a significant shift towards light weighting to meet emission as well as safety standards. While the shift has already happened in motorsports and aerospace segments, automobile will also see such transition,” Ujjwal Munjal, Executive Director, Rockman Industries, told BusinessLine over a telephone interaction.
Today, carbon composites account for 85 per cent parts volumes in Formula 1 cars, but they account only for 15 per cent of the total weight.
“Such transition towards light weighting has started happening in the auto sector also and through this (acquisition) we are entering the future technology space at an early stage to try and grow the business,” said Munjal.
The ₹2,250-crore company has chalked out an investment budget of ₹500 crore for the next two years to set up new factories for the existing auto business as also the emerging carbon composites business.
“Carbon composites business is expected to account for 10 per cent of our turnover in the next five years,” said Suman Kant Munjal, Chairman Managing Director, Rockman Industries.
The company expects the proposed capacity expansion and the diversification business strategy to propel it to achieve total revenues of ₹5,000 crore by 2021.
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