Date:28/07/2007 URL: http://www.thehindubusinessline.com/2007/07/28/stories/2007072851421000.htm

Back MIL eyes acquisition in Europe

Our Bureau

New Delhi, July 27

Auto parts maker Minda Industries Ltd (MIL), a part of NK Minda group, is looking to acquire companies in Europe in the range of Rs 200-300 crore by the end of this fiscal. This could be in a similar range of products such as switches, horns and automotive lighting in which it already has its presence. "Discussions are on with various firms in Europe which are related to our core and related products. However, valuation is becoming an issue," said Mr Vivek Jindal, Executive Director, MIL. He said 60 per cent of this amount would be from internal accrual and the rest through debt.

The company on Tuesday entered into a joint venture with France’s Valeo Electrical Systems to set up a starter motor and alternator plant in Chakan, near Pune, at an investment of Rs 100-120 crore. While Valeo will hold 66.7 per cent , the rest will be held by the Minda Group.

“We are currently looking to supply to the domestic market. As our global OEMs are looking to make India as their export base we plan to enhance our presence in this market,” said Mr Orazio Ragni, Vice-President, Valeo Electrical Systems. This would mark the French company Valeo Group’s fourth joint venture in the Indian market.