Mumbai:

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.

The company''s exports have increased in recent quarters. For the year ended March 2005, exports increased by 53 per cent to Rs261 crore, accounting for about 28 per cent of the total income.

The robust growth in domestic automobile production has helped Sundram Fasteners record steady growth in earnings in recent years. For the year 2004-05, income increased by 35 per cent to Rs930 crore. Post-tax earnings increased by a relatively modest 20 per cent to Rs69.4 crore.

With the domestic automobile industry growing at a healthy pace, Sundram Fasteners is well positioned to grow at a healthy pace.

Shares in Sundram rose 1 per cent to 146.75 rupees in a flat market on news of the deal.