India’s Ruia Group, which has a controlling interest in local tyre maker Dunlop India, has acquired British auto component manufacturer Schlegel Automotive Europe.
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Group chairman Pawan Kumar Ruia confirmed the buy to the Economic Times of India newspaper without disclosing the amount paid.
“Keeping in mind the growing demand in the automotive sector, we are planning to set up a Schlegel manufacturing unit in India. We will invest US$15m for expansion in India,” Ruia told the paper on Wednesday.
Schlegel will partly fund the investment in the 100%-Schengle Europe subsidiary called Schlegel Automotive India.
“We plan to set up one mother plant in India, where mixing and extrusion work will be carried out and the finishing lines can be done at various units situated near the customer bases,” Schlegel Europe managing director of global operations David Boynton told the Economic Times.
Boynton said production would begin within a year at a location still to be decided.
Production capacity and product lines would also be expanded at the UK unit with an investment of $6-7m, Ruia said.
The report said Schlegel supplies rubber seals to BMW, Bentley, Toyota, Honda, Ford, Mitsubishi, Renault and Opel.
Ruia Group entered the tyre business in 2005 by acquiring Dunlop and Falcon Tyres and added Mumbai-based Monotona Tyres and Industronics in Malaysia in 2007, the paper noted.
