Sintex Industries subsidiary to acquire Bright Brothers Ltd''s automotive unit

06 September 2007

Bright Autoplastic Pvt Ltd, a downstream subsidiary of Sintex Holdings B V Netherland (Sintex Offshore Holdings) plans to acquire the automotive products business division the Chennai-based Bright Brothers Ltd. Sintex Holdings is the overseas arm of Sintex Industries Ltd.

Sintex will acquire the company in the form of a slump sale purchase, for a transaction amount of approximately Rs149 crore. The slump sale includes purchase all five strategically located automotive component manufacturing plants in India.

The automotive products business division to be acquired includes five manufacturing units located at Sohna, Pune, and Nasik in Maharashtra and Pithampur in Madhya Pradesh.

The newly formed entity will retain all 400 employees from the existing workforce of the automotive division of Bright Brothers, while its promoters will provide strategic support to the acquirers, with Suresh Bhojwani, vice chairman, taking a position on the board of directors in the acquiring subsidiary after the completion of the transaction.

Bright Brothers has a strong presence in automotive components which includes various body parts, instrument panels, console, trims, ultra sonic welding, hot plate welding, spray painting etc., consumer durable components which includes white good body parts like twin tube, agitators and styling parts to various reputed consumers goods manufacturers and branded products.

"This acquisition represents a significant step towards us establishing a strong presence in the domestic plastic auto component market," said Amit Patel, managing director, Sintex Industries Ltd. "Bright Brothers is a consistently performing high growth company, with a portfolio of established products that have tremendous potential, catering to leading OEMs in the domestic automobile segment."