auto - ancillary

8/9/2019 Auto - Ancillary

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MERGER & ACUISITION- AUTO ANCILLARY SECTOR

PRESENTED BY

MANISH AGARWAL (A-1)

ATANU SARKAR (A-5)

KALPIT BABEL (A-6)

ABHISHEK BADALA (A-7)

AMIT BAGRE (A-8)

ANUSHREE BAPNA (A-11)


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AUTO ANCILLARY SECTOR

OVERVIEW One of the UPCOMING industries of the

Indian economy.

Indian auto component industry is quitecomprehensive with around 500 firms in theorganised sector producing practically allparts and more than 10,000 firms in smallunorganised sector, in tierized format.

India enjoys cost advantage with regard tocastings and forgings.


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COMPONENT-WISE SHARE OFPRODUCTION


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CAPABILITY OF INDIANCOMPONENT SUPPLIER


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AUTO-COMPONENTPRODUCTION

Production of auto ancillaries has been growing at a

robust 20 per center annum since 2000.


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AUTO COMPONENT EXPORTS

Exports of auto components have beenstrong growing at 24 per cent per annumsince 2000.

This growth in exports if sustained foranother five years will see Indias autocomponents exports will touch USD 5

billion by 2011 from the USD 3.6 billion atpresent.


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DIRECTION OF EXPORTS


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MAJOR PLAYERS
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CASE STUDY

ofACQUISITION

BHARAT FORGE => CDP

ALUMINIUMTECHNIK


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BHARAT FORGE LTD.

Bharat Forge Ltd. is the flagship company of the over

$ 2.4 billion Kalyani Group.

A major player in the commercial vehicle segment.

It is the second largest forging company in the world.

The company also claims global leadership in thecommercial vehicle chassis segment.

It is a global corporation with world-class engineering

capabilities, state-of-the-art manufacturing facilitiesand a global customer base.


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HIGHLIGHTS

Bharat Forge has acquired 100%ownership interest in CDP AT in anall cash deal

Acquisition marks the entry of thecompany into the hi-end and fast

growing aluminium auto-component business.

This is companys secondacquisition in Germany after CDPBharat Forge GmbH.

The acquisition strengthens thecompanys position in the chassiscomponent business


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KEY OBJECTIVES OF GLOBALSTRATEGY

De-risked business. Products, Geographies& customers.

Strong and definite evolution from being acomponent supplier to being a developmentpartner with global OEM customers

Work closely with our customers foridentifying new business opportunities forBFL to create a win-win situation for both.

Strengthen Dual Shore supply capability


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FUNDING PATTERN

Bharat Forge has acquired. CDP at theenterprise value of Euro () 6.30 Million.


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STRATEGY

This acquisition was a gateway pass forthe company into aluminium autocomponent business

This process was a step towards attainingglobal leadership.

Enhancing companys product range &technical capabilities, in both steel andaluminium.

To enlarge its product offerings for apotential value added systems &

assembly market.


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BENEFITS

The acquisition will significantly strengthen thecompanys position in the global Passenger Car &Chassis Component business.

Enabling existing customers to source complete

spectrum of forged auto components.

Adding international clientele base such as BMW,Audi, Volkswagen, Ford, etc.

Initial period after acquisition witnessed significantimprovement in the sales and PBT to Rs 561 croresand Rs 40 crores respectively.


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CASE STUDY of a JOINT

VENTUREANAND AUTOMOTIVE LTD : TAKATA LTD


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ANAND AUTOMOTIVE SYSTEM : TAKATACORORATION

It is a leading manufacturer ofautomotive components andsystems in India.

Group comprises 18 companieswith 36 manufacturing locationsspread in 9 states across the

country. Group's capability to set up the

state-of-the-art and highlyproductive plants with in-houseexpertise, gives it a competitiveedge.

It is a leading globalsupplier of automotivesafety systems .

It is engaged in the

manufacture and saleof safety systems forautomobiles, includingseatbelts, airbags, and

steering wheels.


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HIGHLIGHTSHIGHLIGHTS

The joint investment is likely to be around Rs 230crore for setting up a plant in Neemrana nearDelhi and another in Chennai.

The new entity will be known as Takata India PvtLtd (TIPL), Takata corp. as major stakeholder &Anand automotive as minor.

It is wholly-owned subsidiary in India.

TIPL will focus on various occupant safety systemsfor passenger cars, SUVs, MUVs and MPVs.


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SYNERGYSYNERGY

Takata will enter Indian market JOINT VENTURINGwith Rs.3000 cr company employing about 7,500professionals and makes diverse parts.

Anand Automotive will experience internationaltechnology.

Both plants(Delhi & Chennai)will manufactureseatbelts, airbags and steering wheels,and will

cater to the Indian domestic automobilecompanies.


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OTHER CASE STUDIES
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THANK YOU

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