Machinist, Thursday, 10 May 2007
Written by Arjun
Chennai :The acquisition of Germany's Rs460-crore turnover Eisenwerk Erla GmbH, a foundry that makes turbocharger housings for automobiles was relatively smooth early this year. The company is a supplier to Borg Warner, IHI, the Audi-VW group, BMW, Daimler Chrysler, Honeywell, MAN, MTU, Liebherr, Luk and others. Sanmar acquired the company for Rs150 crore.
The German foundry will enable group company Sanmar Foundries Limited to target the transportation sector in depth. The Indian company is setting up a 30,000 tpa steel foundry at Viralimalai in Tamil Nadu to supply steel castings to earthmoving equipment manufacturers. The company plans to progress to iron castings and the group has chosen SG iron castings to supply the auto sector.
Eisenwerk Erla GmbH ( German-based company, which was acquired by Sanmar Group a few months back ), hopes to bring in sizeable revenue. Apart from going global, the Sanmar group plans to leverage both the acquisitions for its Indian operations. The group's investments in Trust Chemicals and Eisenwerk Erla as well as its Indian investments are complimentary.