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Sintex to acquire auto component business of Bright Brothers
Friday, 07 September 2007, 19:30 IST
Ahmedabad: The 
4,500 million Gujarat-based Sintex Industries has announced that it is acquiring the automotive product business of Haryana-based Bright Brothers in an all-cash deal valued at 1.49 billion.
The company in a communication to the National Stock Exchange (NSE) Thursday said the acquisition was being made by Bright Autoplastic Pvt Ltd, a downstream subsidiary of Sintex Offshore Holdings, the Netherlands, a wholly-owned subsidiary of Netherlands Sintex Offshore Holdings, which in turn is a wholly-owned subsidiary of Sintex Industries Ltd based in Kalol, Gujarat.
Sintex operates in two business segments: textiles and plastics. The products of the textiles division include wool tops, cotton yarn, acrylic yarn, viscose yarn, various blended yarns and fabrics and fishing nets. Plastic products include water tanks, doors, windows and prefab sections and shelters.
Bright Brothers Ltd has operations in Chennai, Pune, Pithampur and Nashik. The company has a strong presence in automotive components, which includes various parts like fenders, seat bases, radiator grills and auto bumps, besides instrument panels, interior parts, consoles and trims. The company also produces components for the consumer durable industry as well as materials handling equipment.
Some of the leading clients of Bright brothers include Maruti Udyog Limited, Tata Motors, Hyundai, Mahindra and Mahindra, Honda and Kinetic Engineering.
Tushar Naik, company secretary and general manager, finance, Bright Brothers Ltd, told IANS that by deciding to hive off the automobile products decision, the company has unlocked value at the right time.
He said the auto component industry as a whole is doing fine but margins are declining fast. "Those who bought our products as original equipment wanted component makers to reduce prices under the pressure of the competitive environment they faced. This put a squeeze on our finances and severely restricted our capacity to enhance manufacturing capacity and match their ever-growing demands," Naik said.
Source: IANS
4,500 million Gujarat-based Sintex Industries has announced that it is acquiring the automotive product business of Haryana-based Bright Brothers in an all-cash deal valued at 1.49 billion.
The company in a communication to the National Stock Exchange (NSE) Thursday said the acquisition was being made by Bright Autoplastic Pvt Ltd, a downstream subsidiary of Sintex Offshore Holdings, the Netherlands, a wholly-owned subsidiary of Netherlands Sintex Offshore Holdings, which in turn is a wholly-owned subsidiary of Sintex Industries Ltd based in Kalol, Gujarat.
Sintex operates in two business segments: textiles and plastics. The products of the textiles division include wool tops, cotton yarn, acrylic yarn, viscose yarn, various blended yarns and fabrics and fishing nets. Plastic products include water tanks, doors, windows and prefab sections and shelters.
Bright Brothers Ltd has operations in Chennai, Pune, Pithampur and Nashik. The company has a strong presence in automotive components, which includes various parts like fenders, seat bases, radiator grills and auto bumps, besides instrument panels, interior parts, consoles and trims. The company also produces components for the consumer durable industry as well as materials handling equipment.
Some of the leading clients of Bright brothers include Maruti Udyog Limited, Tata Motors, Hyundai, Mahindra and Mahindra, Honda and Kinetic Engineering.
Tushar Naik, company secretary and general manager, finance, Bright Brothers Ltd, told IANS that by deciding to hive off the automobile products decision, the company has unlocked value at the right time.
He said the auto component industry as a whole is doing fine but margins are declining fast. "Those who bought our products as original equipment wanted component makers to reduce prices under the pressure of the competitive environment they faced. This put a squeeze on our finances and severely restricted our capacity to enhance manufacturing capacity and match their ever-growing demands," Naik said.
Source: IANS