Auto parts firms may go for distressed assets
January 12, 2010 5:16 am
A top-level management team from Delhi-based auto component supplier, Krishna Maruti, is readying to meet up with France-based Thyssen and Munich-based BMW to explore the possibility of acquiring their distressed assets.
The move marks a growing trend of second-rung Indian auto component majors looking at picking up distressed assets of international automakers and ancillary makers. The focus primarily is to access low-cost global manufacturing capabilities and also strengthen domestic capacities in a market, which is swiftly getting globalized. Officials privy to the development said companies such as Federal Moghul, Rane, JBM Group, Krishna Maruti and Sriram Pistons are closely looking at sparingly-used assets, which are now available at 20-30 per cent cheaper valuations.
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