Uma Precision acquires firm with Japanese backing

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."

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.

"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.

The company has five manufacturing units in Maharashtra and one each in Hosur and Bangalore.

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. "

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.

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.

"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.