Taurus Flexibles have announced their strategic association with Spain based Cikautxo s. Coop and Mondragon S. Coop to augment the manufacturing of rubber and plastic hoses for the automotive segment for international and domestic markets. This tie-up is being achieved by the acquisition of 50% stake in Taurus’ wholly owned EOU subsidiary in Pune created from the transfer of assets from the parent group. The joint venture company is called Cikautxo Taurus Flexibles Private Ltd. and has an estimated networth of Rs. 34 crores.
Taurus Flexibles is a Rs. 200 crores reputed domestic manufacturer of automotive tubes and hoses with an impressive track record. While with € 220 million turnover, Cikautxo s. Coop of Spain designs and manufactures parts and assemblies for diverse applications for the automotive industry. The company holds the repute of proving service to leading automobile companies in the world.
Commenting about the deal, Rishi Kshettry, CEO, Cikautxo Taurus Private Ltd, stated “We wanted to raise our profile and enhance awareness of our technological expertise. Both the companies have ingenious approach and technical acumen, which will facilitate augmentation of innovation for both processes and products.” Adding more about the alliance he said, “Cikautxo’s boasts of enviable customer base in India and internationally e.g. VW, Daimler, Ford, Renault, Nissan, GM-Opel, PSA, Behr, Valeo, amongst others and it’s our honour to extend our expertise to some of the best in the automotive industry.”
Mondragon and Cikautxo both are cooperatives which are owned by their employees. Mondragon recently have set up an industrial park in India to provide space to its group companies in the country.
According to Victor Arrizabalaga, CEO of Cikautxo s. Coop, “The strategic alliance with Taurus Flexibles have paved our way into the Indian domestic market, undoubtedly one of the fastest growing auto market in the world. The rational production cost in India and technical capabilities will complement our existing manufacturing bases in Spain, Czech Republic, Slovak Republic, Brazil and China and will enable us to meet the global demand.”
Merisis Capital Advisors, specialists in mergers and acquisitions have been the exclusive advisors for the deal between Taurus Flexibles and Cikautxo s. Coop. Commenting on this arrangement Sumir Verma, Managing Director, Merisis Capital Advisors, said “the deal reflects a growing pragmatism on the part of the Indian vendors to structure a relationship with international vendors and create a win-win situation for both the parties.”
