Electromags buy to beef up Wadias’ auto parts biz
The Wadia group is gearing up for an increased presence in auto components. Group company, Afco Industrial & Chemicals, has bought Chennai-based Electromags Automotive Products for about Rs 50 crore.
Afco is a subsidiary of Bombay Burmah Trading, India's second-oldest listed company with interests in timber trading, tea plantations and textiles.
Though the company didn't provide further details, it has been learnt that the move is in line with its objective of increasing presence in the fast-growing auto components business. It is also in sync with the restructuring that the group has drawn, that includes a focus on new-age businesses such as aviation, retail and real estate.
Electromags Automotive makes electro-mechanical components and its clientele includes foreign and local companies such as Robert Bosch, Honda, TVS Motorcycles and Sundaram Clayton.
The Wadia group already has an auto component unit through BCL Springs, India's second-largest maker of precision springs. It posted a 34% growth last fiscal. Sources said while the acquisition is small, it certainly indicates the group's plan to expand into pneumatic products and also into foreign markets. Electromags Automotive exports to countries like Germany, UK, Turkey, Denmark, Singapore, Thailand and Malaysia.