Pricol to invest Rs 500 crore in acquisitions to achieve its revenue target of Rs 3,000 crore by 2020

The automotive components maker has set its sights on buyouts in Germany and the US

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Pricol Limited, a leading manufacturer of automotive components, plans to invest around Rs 500 crore in acquisitions in a bid to achieve the company's consolidated revenue target of Rs 3,000 crore by 2020.

Pricol plans to focus on entering newer markets through acquisitions, tapping new product segments. The company would invest around Rs 500 crore in acquisitions, mainly in Germany and the US, and plans to set up faculties in Vietnam and Mexico till 2020. The debt-free company will fund the investment through internal accruals and debt, said Vikram Mohan, managing director, Pricol Limited.

He added that of the Pricol's total turnover (consolidated annual revenue for 2014-15 was Rs 1,150 crore) export contributes around Rs 300 crore. By 2020, the company expects around 40% of the revenue will come from exports. 

After unveiling the company's new brand identity, Mohan also said that this new identity reflects its core values & strategic focus in its businesses for India and global markets. 

In many segments, Pricol is a market leader globally, but not many knew about it, Mohan said. For instance, the company is world's second-largest manufacturer of driver information systems (DIS) for the two-wheeler segment, India's largest manufacturer of automotive pumps for the two-wheeler segment, world's fourth-largest manufacturer of instrument clusters for tractor and off-highway vehicles, India's largest manufacturer of telematics solutions for the tractors and off-highway vehicle segments.

Mohan said the company’s target revenue could be in the range of Rs 250 crore to Rs 400 crore and it will be for customer access, market access and even for technology 

access. Recently, Pricol acquired Melling do Brasil, an automotive powertrain manufacturing Company in Brazil (renamed later to Pricol do Brasil). The company serves domestic and international customers such as Volkswagen, FIAT, General Motors, Harley Davidson, Mack Trucks etc.

Pricol currently has eight manufacturing units and seven business offices across the globe including India, Indonesia, USA, Brazil, Germany, Singapore and Japan.