INDIA BUSINESS WORLD - NOVEMBER 16th - NOVEMBER 30th
- 2007
JYOTI CNC ACQUIRES FRENCH MACHINE TOOL CO FOR RS 240 CR
Rajkot-based Jyoti CNC Automation has acquired French machine tool company Huron Graffenstaden for around Rs 240 crore, in an all cash deal.
Jyoti CNC CEO Parakramsinh Jadeja signed the deal in France. "We have made the acquisition with help from Bank of India," he said over the phone. The 100 year-old Huron Graffenstaden has a big presence in Europe's machine tools business mainly supplying to aerospace and automobile sector. The Euro 40 million company has a total production capacity of Euro 60 million and employs 140 people.
For Jyoti, which did a business of Rs 120 crore last fiscal, the acquisition gives it access to the European markets as well as helps it increase its domestic presence with new technologies and an entry into the growing aerospace market. The workforce of Huron would be leveraged to serve the international markets, Jadeja said.
Jyoti had entered into an agreement to manufacture co-branded products with Huron about a year back to supply to Europe based aerospace clients.
The focus now will be on common procurement, designing and technology leadership, along with the creation of a global platform. The technology would leverage its strong product portfolio and build a base for one stop shop CNC machine manufacturer across the globe, especially in India and China.
"The value creation is based on increased growth potential and not only on consolidation and cost reduction," he said.
Jyoti manufactures turning centres, turn mill centres, vertical machining centres, vertical line machines and so on to cater to aerospace and automobile companies in India as well as in foreign market. The company has drawn plans to invest close to Rs 100 crore over the next year to double its production capacity.
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