Mumbai: JK Files & Tools, a division of Raymond, has announced the completion of its strategic acquisition of the steel files division of HGI Industries, an Aditya Vikram Birla group company. Raymond had signed an agreement on 31 August 2001 for the transfer of their steel files division as a going concern to Hindustan Files Company, a strategic business unit of the Raymond group.
Commenting on the strategic takeover Raymond group president Nabankur Gupta said: "This strategic acquisition strengthens the global leadership position and competitive edge of J K Files & Tools in the international arena."
J K Files & Tools, the worlds largest seller of steel files with over 30-per cent global market share, has four plants in India and a joint venture in Indonesia. It has a cumulative annual capacity of manufacturing 50 lakh dozens of files. It is also the largest producer of ground flute drills in India in the HSS cutting tools range. It boasts of an impressive research and development cell and in-house machine-building facilities. In its 50 years of operations, JK Files & Tools has built up a strong goodwill and a wide network of agents and dealers spread across all over the world. More than 50 per cent of its production is exported to more than 80 countries mainly to developed markets like Europe, the US, the Middle East, Latin America and Africa. Their primary brands Sunflower and Three Files command good brand equity. The company has received the Export Excellence Award year after year since 1972. All its plants are ISO 9002-certified.
HGI Industries, part of the AV Birla group, has a manufacturing plant for files at Tangra Kolkata, capable of producing 12 lakh dozen files every year. The plant was established in 1954 and is certified as ISO 14001 and ISO 9002 compliant. The company has a substantial export market and its primary brand is Scissors and Kingfisher.
The Raymond group is a Rs 1,400-crore-plus conglomerate. Raymond is focusing on its core businesses like textiles, readymade garments and engineering files and tools and mens toiletries. The new strategy focuses on revamping its retail and distribution chain across the country.