SUPRAJIT ANNOUNCES
TWIN ACQUISITIONS
– ONE EACH IN UK AND INDIA.
Suprajit Engineering Limited, India’s largest automotive cable manufacturer,
has announced an agreement to acquire the business of CTP Gills Cables, a Birmingham,
UK based automotive cable manufacturer, from Carclo plc. Suprajit will also
acquire the balance 50% stake held by Carclo plc in the Indian JV, CTP Suprajit
Automotive Private Limited, set up as a 100% EOU.
Total consideration for the twin acquisitions is approximately Rs.25.00 crores.
The acquisition is a significant step in Suprajit’s globalization strategy
giving it a good foothold in Europe.
Suprajit’s consolidated revenues and profitability will double by March
2008 through these acquisitions and domestic growth, from its present turnover
of around Rs.136.00 crores achieved during the year 2005 – 06. (un-audited).
Carclo is a UK PLC, listed on the London Stock Exchange. CTP Gills Cables,
a 100% subsidiary of Carclo, manufactures automotive cables at its facility
in Lichfield – Birmingham. The customer profile includes Ford, Toyota,
Jaguar, General Motors, Saab and other automotive and Tier 1 customers.
CTP Suprajit Automotive is a 50:50 JV between Carclo plc and Suprajit. This
100% Export Oriented Unit recently started manufacture of cables for the European
Union in collaboration with CTP Gills Cables. Gills will outsource a significant
portion of their current requirement of cables to the Indian JV.
Suprajit has incorporated a 100% owned subsidiary in UK – Gills Cables
Limited. Gills Cables Limited will acquire the assets and business of CTP
Gills Cables. Suprajit will also acquire the balance 50% stake, held by Carclo
in the Indian JV, CTP Suprajit Automotive. On completion, Suprajit will have
two 100% owned subsidiaries – one in India, to manufacture cables exclusively
for exports to Europe initially and the other in UK, which will own the assets
and business of CTP Gills Cables.
Gills Cables Limited will act as a major technology centre for the global
activities of Suprajit and handle most logistics for the European activities.
It will maintain a manufacturing base in the UK for specialty and low volume
cables. The Indian subsidiary will produce bulk volume export cables.
The EOU, when fully owned by Suprajit, will act as its global hub for exports
not only to Europe, but also to other regions.
The twin acquisitions will bring significant synergies to Suprajit in terms
of its manufacturing activities, technical competence, warehousing and logistic
capabilities. Suprajit will acquire global reach through its UK and Indian
subsidiaries.
Suprajit also has a pleasure in informing that :-
The Company will be setting up a new cable plant in Pantnagar, Uttaranchal,
which will go into production before 31st March 2007. Land for the same has
been acquired.
The Company has received an initial order for supply of cables to North America
by Lear Corporation.
Commercial production has started at the JV Company – CTP Suprajit Automotive
Private Limited, a 100% EOU.
The sales for the year 2005 – 06 has crossed Rs.136.00 crores as against
Rs.106.00 crores last year, an increase of 28%.
The number of cables despatched for the year 2005 – 06 was 41 million,
as against 32 million of the previous year.
