Uma Precision, the Pune-based Rs 80 crore auto component firm, will take over the Bangalore-based Gera Auto for close to Rs 3 crore. In addition to this, Uma Precision also announced that a Japanese private equity firm H&M Global Selection has invested Rs 7 crore to fuel Uma's Rs 50 crore expansion plan over the next two years. | |
| Announcing details, Uma Precision MD Rajendra Z Kankaria said, "The capex programme will enable the company to manufacture high-end auto and electrical parts, to cater to the growing domestic and international demand." |
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| Uma Precision which has Tata Motors, Bajaj and Kinetic Motors among its major customers, is also looking at taking the company public in a year. |
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| "We plan to raise close to Rs 35 crore through this route and the remaining funds will be channelled from internal accruals and external debt," added Kankaria. |
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| The company has five manufacturing units in Maharashtra and one each in Hosur and Bangalore. |
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| Commenting on the rationale for investing in the firm, Chris K Hosokawa, principal officer, H&M Global said, "Our focus for making investments in India is to look for high growth mid-sized companies with high quality of management. We are confident that our investment in Uma Precision will prove to be fruitful. " |
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| He added that investments in the automobile and auto ancilliary sector is going to be a win-win situation across the global during the next decade. H&M is planning to invest close to $100 million over the next three years in India across a variety of sectors. |
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| Kankaria added that the Indian auto component industry is expected to touch $17 billion by 2012, from the current $8.7 billion, growing around 30 per cent year-on-year. |
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| "There is lot of potential for Indian auto firms to participate in this explosive growth and we aim to touch a topline of close to Rs 150 crore by end of next year," he added. |
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