 "Escorts divests auto products business to Badve Engineering")
Escorts Ltd has divested its OEM & exports business of auto product division to Pune-based Badve Engineering Ltd in an all cash deal as a part of the planned strategic reorientation of the business to focus on core verticals in the agri-machinery, construction equipment and railway equipment.
The auto products business comprises an extensive product basket catering to OEMs and replacement market in India and overseas markets for all vehicle categories including motorcycles, scooters, passenger cars, commercial vehicles and multi-utility vehicles.
Escorts had been looking to rope in a strategic partner to turnaround the Escorts Auto Products (EAP) business, which had recorded revenue of Rs 92.4 crore in FY 2016, for last few months.
Dipankar Ghosh, CEO, Escorts Auto Products and Escorts Railways Products, said, "We believe that the transfer of OEM and exports business to Badve Engineering Ltd will help us to focus on our core areas. We are delighted that Badve Engineering Ltd has stepped in to take the business forward."
Escorts Auto Products’ manufacturing plant in Faridabad has the capacity to produce 3.2 million shock absorbers and struts and 3 lakhs front forks per annum.
Badve Group, which has 20 manufacturing plants spread across India, mainly produces auto components and aggregates for 2-wheeler (2W), 3W and 4W manufacturers, components for home appliances and also helmets under JV with Vemar of Italy.
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