Financial Daily from THE HINDU group of publications
Tuesday, Nov 16, 2004
Financial Daily from THE HINDU group of publications Tuesday, Nov 16, 2004 |
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Corporate
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Alliances & Joint Ventures Escorts Auto scouting for foreign partner Neha Kaushik
New Delhi , Nov. 15 ESCORTS Auto Components Ltd (EACL), the erstwhile subsidiary of Escorts Ltd, which was acquired by eight employees in June this year, is in talks to offload stake to a foreign partner. According to Mr Bharat Caprihan, CEO, EACL, the company is currently in negotiations with an Italian and a Japanese firm to attain new technology. "This will help us to diversify into new product segments. We might start another company to facilitate the same. The agreement is expected to materialise by December-end," he said. EACL, which manufactures carburettors, oil pumps and clutches for two-wheeler companies, is also in the process of developing specific products for the Chinese market. "There is ample scope for exports to China, especially with regards to carburettors. We have already opened an office in China to study the market opportunities. "Our business plan encapsulates both expanding the product range and markets. We are also studying the possibility of manufacturing certain components for four-wheelers as well," Mr Caprihan said. The company claims to have achieved financial success since its takeover this year and is expecting sales in the region of about Rs 30 crore in the next financial year. Its key clients include Hero Honda, Yamaha, Bajaj Auto and Royal Enfield. Meanwhile, the company's name is also set to change soon to Eco Auto Components Ltd in keeping with the change in shareholding. Earlier in June, in a rare move in the corporate world, the CEO of EACL along with seven other employees had acquired Escorts Ltd's 78 per cent stake in the company. The balance 22 per cent of the public limited company is owned by about 2,800 shareholders.
More Stories on : Alliances & Joint Ventures | Automobile Components
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