Sundram to acquire German auto components manufacturer

10 November 2005

The deal is subject to the approval of German government authorities under German Cartel Regulations the company informed the NSE.

ICICI Securities is the advisor to the company on this transaction.

Sundram Fasteners is among the leading producers of high tensile fasteners in the country. The company''s product portfolio encompasses products such as radiator caps, powder metal parts and cold extruded products.

Sundram Fasteners also caters to the original equipment requirement of auto majors. It has a presence in the domestic replacement market and over the years it has expanded its product as well as customer base. The company''s focus on exports is also positive.

Sundram has been gradually morphing into a multinational and is gradually defocusing on India. Last year it merged with Autolec Industries, and acquired an auto component unit based in the UK.

It has also entered into a joint-venture agreement with Bleistahl of Germany for setting up a 100-per cent export-oriented unit. The commissioning of production facilities in China is another significant factor that has resulted in the dilution of the company''s earnings concentration towards the domestic automobile industry.