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Ruia Group May Acquire German Automotive Component Company
According to Pawan Kumar Ruia, his company is pursuing acquisition plans aggressively and is close to the deal, but is yet to finalise the terms of the transaction. The name of the automotive component company is unknown.
Falcon Tyres, one of Ruia group companies, will gather roughly 800 crore by way of fresh shares through a rights issue, equity convertible warrant or other instruments which will eventually fund the expansion programme through capacity expansion in the domestic country besides overseas acquisition.
Ruia Group lost to Mahindra, as the latter was chosen to be the preferred bidder of the ailing Korean maker Ssangyong. Ruia is now planning to invest in the Mysore plant in order to raise the capacity by 50 percent to 15 lakh tyres per month. Ruia is also planning to invest money in a new factory in Haridwar with a capacity of 5 lakh tyres per month.
Ruia stated that the greenfield facility would primarily cater to Hero Honda while the new capacities at Mysore would primarily target the fast growing bike and scooter segment. The new investment will aid Falcon Tyres to increase its capacity by two-folds to over 20 lakh units million by September 2011.
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