Chennai: Auto electricals manufacturer Lucas TVS Limited has acquired the auto component facility of Sical Logistics Limited at Maraimalai Nagar, near Chennai for Rs14.69 crore.

Formerly known as Indrad Auto, Sical Logistics'' auto component division made auto electricals. The division logged a turnover of Rs22 crore and a profit of Rs1.8 crore.

For a long time the logistics company was scouting for a buyer and had discussions with several global majors before zeroing in on Lucas TVS.

According to a Lucas TVS official who does not want to be quoted, said the acquisition would synergise with the company''s existing operations as the products made are similar. It would be a good fit for the TVS group company''s growth strategy.

With this asset disposal, Sical Logistics has realised a sum of Rs90.18 crore through its disinvestment process that started in 2006.

However the current sale does not include the high wattage engine cooling modules and motor wiper business of Indrad Auto. Sical Logistics has a technology transfer agreement with Gate SRL, Italy whereby it would source components from the Italian company and assemble the same at its Maraimalai Nagar facility.

According to Karthik Menon, director, Sical Logistics, the company would continue the partnership till the Italian company takes a final view on the business.

The process of demerging the auto components business took some time as the company was focused on getting the structure right and selling in the manner to extract break up value, said Ashwin Muthiah, chairman, Sical Logistics,.

The two divisions that are yet to be sold are speciality chemicals and drums. Menon says that the two businesses do not get any cash from Sical Logistics and they are self sustaining.