Auto parts maker Amtek Auto has acquired the connecting rod assembly line of Amforge Industries for about INR100m rupees, a senior official said on Thursday.
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The asset buyout would add about INR500m to Amtek Auto’s revenue in the year to June 2007 and give the company a near monopoly in the Indian connecting rod market, Amtek’s finance director Santosh Singhi told Reuters.
An Amforge official, speaking on condition of anonymity, confirmed the deal.
“It is a strategic buy as we become the single vendor for connecting rods,” Singhi said, explaining there was now little serious competition to the company in the segment, except suppliers in the informal market.
He reportedly said the deal would increase Amtek’s connecting rod capacity to 5.5m units a year from 4m now.
The machines were being moved from Amforge’s unit in northern Faridabad to Amtek’s Gurgaon unit, he said.
Reuters noted that Amforge had in 2005 sold its forgings division near Pune city to a unit of India’s largest tractor maker Mahindra & Mahindra.
