Dhoot Transmission buys Scottish firm TFC Cable for Rs 100cr

Third largest electric component maker for auto sector Dhoot Transmission today agreed to acquire 100 per cent equity in Scotland-based TFC Cable Assemblies for Rs 100 crore, which will help the Aurangabad- based firm to strengthen its presence in Europe.
The deal will help the Rs 600-crore family-owned Dhoot to make a foray into the lucrative European & Eastern European markets apart from strengthening its presence in continental Europe and Britain.
Though the company refused to share the deal size, market sources told PTI that Dhoot has paid Rs 100 crore for the Scottish firm.
Dhoot, the third largest player after Motherson and Spark Minda group in the Rs 5,000-crore wiring harness and auto electronics business market in the country, is already present in England.

The five-decade-old premier electronics manufacturer TFC has state-of-the-art units in Scotland and Slovakia and will thus help Dhoot expand its European presence.
Set up in 1999, Dhoot Transmission has 11 plants across the country and two overseas - in England and Slovakia - and this is the third overseas acquisition for the company, managing director Rahul Dhoot said.

Mumbai-based i-banker Singhi Advisors, focused on niche cross-border M&As, acted as exclusive advisors to Dhoot Transmission in the transaction.
Commenting on the deal, Rahul Dhoot said, "TFC will have a dual impact on us with the opening of a manufacturing base in Eastern Europe as well as new customers for our products."

On the growth plans, he said the company has set an internal target of trebling the revenue from the present Rs 600 crore over the next four years.
Singhi Advisors managing director Mahesh Singhi told PTI that this acquisition affirms the prospects for domestic companies both in terms of organic and inorganic growth parameters.
Terming the TFC acquisition as revenue acretive, Rahul Dhoot said the deal will fetch an additional revenue of Rs 100 crore this year itself, helping him double his overseas revenue share to 30 per cent.
Dhoot has grown from being a single unit in 1999 in Aurangabad, central Maharashtra, to a multi-locational, multi- country business with 13 world-class units across Aurangabad, Pune, Chennai, Manesar, Pithampur, Britain and Slovakia.

Its major customers include Bajaj Auto, Royal Enfield, Honda, Suzuki, Piaggio India & Italy, KTM India & Austria in the 2-Wheeler category.
The company's commercial vehicles OEMs include M&M, VE Commercial Motors, Force Motors, MAN Trucks, Eicher Polaris, Piaggio, while John Deere, Kubota India & SE Asia, Escorts, Tafe, OHV-Volvo India & Korea, CNH and Loboy are its clients in tractors components.
TFC Cable, set up in 1971, is regarded as a premier electronics manufacturer serving ATMS, analytical instruments, work access platforms, scientific equipment, gaming & vending, commercial catering & food service equipment and heating bentilation & controls, among other segments.