Pricol to merge Xenos for auto synergy
The company is seeking shareholders' approval for the merger
The objective of the merger is to position the combined entity as a “one-stop solution provider” for a range of products to the original equipment manufacturers (OEMs), Pricol’s statement said.
Pricol, as directed by the Madras high court, has called for the shareholders’ approval for the scheme of amalgamation. The scheme of amalgamation would take effect from the appointed date of January 1, 2014.
The amalgamation would help Pricol in creating a platform for a new business vertical besides functioning as a gateway for growth and expansion of business. Xenos’s products synergise well with the product groups of Pricol like driver information systems and asset management products. “The amalgamation would thus lead to improved customer-connect and enhanced market share across product segments,” Pricol’s statement said.
The scheme of amalgamation would take effect from the appointed date of January 1, 2014.
Pricol has six manufacturing facilities across India. It is engaged in the business of manufacturing and selling of Drivern Information Systems, Powertrain Products such as oil pumps and water pumps, Sensors, Actuators and Switches and Asset Management Systems such as vehicle tracking system to OEM and replacement markets. The company,. with a turnover of Rs 828.26 crore in 2012-13, has a market share of 30 per cent, it said.
Xenos deals with vehicle accessories in the areas of vehicle security systems, Driver Assistance Systems, audio and video systems, auto accessories like mobile charger, power sockets etc. It is currently focusing on manufacturing and contract manufacturing over and abouve the trading, it said. The turnover of the company is around Rs 25.47 crore during 2012-13.