 "Phoenix Lamps to merge with Suprajit Engineering")
Suprajit Engineering Limited, the automotive cable maker, has decided to merge its subsidiary Phoenix Lamps Limited with itself. Suprajit currently owns 61.93 percent in Phoenix Lamps Limited, which is one of the largest manufacturers of automotive halogen lamps catering to the original equipment manufacturer (OEM) and aftermarket across the globe, with a production capacity in excess of 80 million lamps per year. In June 2015, Suprajit Engineering had acquired 51 percent stake in Phoenix Lamps Limited from its existing promoters.
Post-merger, Phoenix Lamps Limited will operate as a separate division of Suprajit Engineering Limited and will continue to market itself under the brand of Phoenix. The consolidated sales of combined entity for the current year is expected to be in excess of Rs 1100 crores with good financial ratios.
“The combined entity will be a leading auto component company with diversified product range and predominant market position in its respective product ranges. The combined entity will be in the top 15 in market capitalisation among listed auto component space, in India. It will have a strong footprint in domestic and international aftermarket,” said Suprajit in a press release.
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The combined entity will have 4 wholly owned subsidiaries – Suprajit Automotive Private Limited (India), Suprajit Europe Limited (UK), Luxlite Lamps Sarl (Luxembourg) and Trifa Lamps Germany GmbH (Germany).
Ajith Kumar Rai, chairman of both the companies, said, “This merger will bring significant synergies together. The combined entity will have a strong balance sheet, along with an excellent OEM customer base and in-depth aftermarket reach. It will further enhance our global footprint. This will also enhance cost efficiencies at various levels, better management bandwidth and reduced compliance requirements. Both Suprajit and Phoenix are strong brands which will be continued. This will be a win-win for both companies”.
Suprajit manufactures complete range of automotive cables and Phoenix produces complete range of halogen lamps for the automotive industry. Both companies have market leading presence in their respective products and supply to most Indian automotive giants. With the combined product range, Suprajit will have a strong portfolio of products, which will help in getting better market share from the OEM customers in India.
The combined entity will have a basket of aftermarket products which will include speedometers, filters, indicators, mirrors, CDI & regulators, stator coils, fuel sender unit, etc, apart from cables and halogen bulbs. “By leveraging extensive aftermarket pan-India network of both companies, the entire basket of products can be sold very effectively to gain higher market share by cross selling,” said the company in the release.
