"this i found on google which is one year old news"
Precision Camshafts signs TA with German firm
Mumbai: Solapur based engine component maker, Precision Camshafts Ltd has entered into a technology tie-up with German engineering company EMAG. The Indian component maker is now on the lookout for an acquisition in Europe to the tune of $50 million to serve local customers.
Precision has lined up Rs 250-300 crore investment over the next three years, which will go towards the acquisition and doubling capacities to 30 million camshafts.
The company has already mandated a consultant to look for a suitable buy in Europe. The company will fund the acquisition through a mix of debt and internal accrual.
Yatin Shah, CMD, Precision Camshafts Limited told ET, "We are in a discussion with a couple of companies. It will take us a year to close to the deal. Instead of looking for a green field set-up, an acquisition is the best way to kick start the operation and be close to the customers."
A market leader (over 50% market share) in India, Precision serves almost all the big names in the Indian domestic market right from Maruti Suzuki, Ford, GM to Mahindra & Mahindra amongst others. Through the tie-up with EMAG, Precision intends to offer ''Assembled Camshaft Technology'' to its customers which is more fuel efficient and less emitting to meet future emission norms, which is getting stringent by the day.
Through the acquisition of this technology from EMAG, Precision will be a complete solution provider for camshafts manufactured by different technologies.
"It is a big jump in technology for the company. With stress on improved fuel efficiency and lower emission, light weighting is becoming the order of the day. Given the scenario, the assembled camshaft technology is ideal. 80% of European market has moved to that technology, I foresee the Indian customers to moving to this technology from the current ''chilled cast iron camshafts'', which are heavier," added Shah.
The assembled camshafts weigh around 700-800 gms, versus 2 kg, chilled cast iron camshaft, Shah says some research have revealed that moving to assembled camshaft could lead to atleast 6-7% improvement in fuel efficiency.
A Rs 500 crore entity, Precision started its camshaft business with M&M being its sole customer in mid-90s for almost three years. There was a time, when 68% of its total business came from Tata Motors alone, today exports accounts for over 85% of its total production in Solapur, indicates the transformation the company has undergone in the last decade. Precision today serves the needs of global biggies like Porsche, BMW, Mercedes Benz, Toyota, GM and Ford amongst others at the global stage.
Despite the slowdown across various markets, Precision has grown at a compounded annual growth rate of 41% over the last five years. PE majors like Actis and Tata Capital have invested in the company in the past and have exited with handsome profits.
With secured orders till 2017, Precision intends to more than double its capacity to 30 million camshafts a year. The company is already working on 15-20 different global projects including the ones meant for India.
The company intends to more than double its turnover to $250 million or Rs 1500 crore over the next three years.
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