Mumbai: The Ruia Group has acquired Metzeler Automotive Profile Systems UK Ltd, the second-largest auto component manufacturer in the UK, for an undisclosed sum. The Ruias have also renamed the unit Schlegel Automotive Europe.
The Kolkata-based Pawan Ruia Group, which has a controlling stake in Dunlop India and Falcon Tyres, concluded the deal through a special purpose vehicle Global Finvest Ltd based in the UK.
The Pawan K Ruia-led group plans to set up a 100 per cent subsidiary, Schlegel Automotive India Pvt Ltd, in India and expects to start production by next year. The location for this facility is yet to be finalised.
Schlegel Automotive India Pvt Ltd will set up extrusion and finishing lines at an investment of $15 million. The company has already placed orders for the equipment at the proposed facility.
The group will also spent an additional $7 million for expansion of production capacity at Schlegel Automotive's existing UK plant.
''Keeping in mind the growing demand in the automotive sector, we are planning to set up a Schlegel manufacturing unit in India.'' Ruia said in Chennai.
Ruia, who is now Schlegel's chairman, said: ''We are now looking at suitable locations for the mother plant. It could be Kolkata, Chennai or Pune."
''We have 21 per cent share in the UK sealing market. The company supplies to Germany, France, Turkey, Belgium, Spain and Netherlands," Schlegel CEO David Boynton said.
Schlegel, which has assets worth $30 million, supplies rubber sealings to auto majors such as BMW, Bentley, Toyota, Honda, Ford, Mitsubishi, Renault and Opel, among others.
Schlegel, founded in 1952, makes rubber sealing products used in automobile doors, windows, hoods and trunks.