Atul Auto mulling foray into agricultural machines biz
Rajkot-based Atul Auto, a dominant player in the three-wheeler market, today said it is planning to foray into the agriculture machines business through acquisition of a Gujarat-based company.
"We are keen to acquire a Gujarat-based company to enter the agriculture machines business. We are in the discussion stage and it (acquisition) is likely to happen by end-June this year," Atul Auto's Director Vijay Kedia told PTI here.
"It is a good company. Its products have good demand not only in the domestic market, but also in Africa. This acquisition will help us to enter the African market for selling both three-wheelers as well as agriculture machines," he said.
However, Kedia, did not reveal the target company's name and valuation.
The three-wheeler maker has recently entered Bangladesh with the launch of its product Atul Gem, a rear-engine model with a six-seater capacity.
For this, Atul Auto has tied up with Bangladesh-based Atul Autos Bangladesh (AABL), which, in turn, has roped in Bangladesh Machine Tools Factory (BMTFL) for assembling the vehicles there.
"We will provide technical assistance to AABL for assembling the vehicles. Experts from the technical team of the company will supervise the assembling work of the vehicles at AABL. The company does not propose to provide any financial assistance to AABL," Kedia said.
"Our sole objective is to promote sales of the vehicles manufactured by the company in Bangladesh," he said, adding that the company expected to sell 2,000 units and a Rs 25 crore revenue by December 2012."
The company's manufacturing facility at Rajkot in Gujarat produces diesel as well as GNG and LPG operated three-wheeler commercial vehicles.
The BSE-listed company is also looking to collaborate with a foreign entity to enter the four-wheeler market.
"We are keen to collaborate with a company whose technology will help us manufacture light commercial vehicles (LCVs)," Kedia said, adding, "we have not finalised anything yet."
Earlier, Atul Auto was interested in acquiring a majority stake in Scooters India, an ailing public sector undertaking in which the government was mulling a divestment.
The company plans to double its capacity in both the passenger as well as commercial vehicles segments from the current 24,000 units to 48,000 units by 2011.
It also plans to ramp-up its dealership network to 140 from the current 115 by end-this year.