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Global auto ancillary major Precision Camshafts today said it has acquired Nashik-based MEMCO Engineering for an undisclosed sum.
The maiden acquisition will help the company in scaling up business with a wider customer-base and bring synergies of know-how in manufacturing, automation and lean concepts, Precision Camshafts Ltd (PCL) said.
Following the takeover, the global sales and technical network of PCL will complement MEMCO to export its products while the financial bandwidth of PCL will provide support for larger, capital-intensive programs of MEMCO, a release said.
"We are happy to announce the acquisition of Nashik-based MEMCO. This synergy will help us further strengthen our industry leadership and diversify into a new product range," PCL Chairman and Managing Director Yatin Shah said.
With a capacity to produce 10.7 million precision components, MEMCO Engineering Private Limited (MEMCO) key products include fuel injection components for conventional and CRDi diesel engines, brake components, high pressure diesel injector connectors for naval ships and high precision instrumentation components.
MEMCO has been growing at a compound annual growth rate (CAGR) of 18.5 per cent over the last four years and enjoys long-term relationships with marquee global customers like Bosch, Delphi, Endress+Hauser and Giro, PCL said in a release.
"With the merged know-how in manufacturing and increased financial bandwidth from PCL, there is a great potential to scale the business in Nashik. We are already in contact with new and old customers to increase business as MEMCO," Shah said.
However, both Rajan Dharkar and Vinita Dharkar will continue to run the show at MEMCO for the next two years, the release said.
"MEMCO is a good first acquisition for PCL in terms of size, products, location and scalability," PCL Director and CFO Ravindra Joshi said.
A one-stop solution for camshafts chilled cast iron, ductile iron, hybrid and assembled, has set a global benchmark in quality due to strong systems, PCL has exported over 60 million camshafts so far.
The Company's clients include global original equipment manufacturers (OEMs) such as Ford Motors, General Motors, Toyota, Maruti Suzuki, Hyundai, Daimler and Porsche.
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