Financial Daily from THE HINDU group of publications
Thursday, Dec 22, 2005


Group Sites

Corporate - Announcements

Gala Precision gets Rs 50 cr from GW Capital — Money to be used for acquisitions, plant in Chennai

K. Giriprakash

Bangalore , Dec. 21

AUTO component maker Gala Precision Technology has received Rs 50 crore funding from private equity firm GW Capital, which will be used to set up a manufacturing plant in China and part-fund acquisitions.

The Gala Precision Technology Managing Director, Mr Kirit Gala, told Business Line that the company will invest over Rs 150 crore across three years on acquisitions, capacity expansion and for setting up the plant in China.

He said the plant would be set up in Shanghai in April 2006 to cater to the Chinese market. Gala Precision has a marketing firm in China, which services clients such as Sanyo and LG Electronics.

It also plans to set up an office in Frankfurt next year.

The company expects to post a turnover of around Rs 350 crore by 2009-10. Its projected turnover for the current year is Rs 70 crore.

Gala Precision, which manufactures critical engineering components for compressors and auto applications such as valves and springs, has assembly and manufacturing units in Gujarat and Maharashtra.

It has a 70-per cent market share in mass finishing solutions. Gala's clients include Sundram Fasteners, Tecumseh, Delphi TVS and Panasonic.

Mr Gala said the Shanghai plant would also supply components to manufacturers in South Korea and Japan.

He said GW Capital had released Rs 15 crore to Gala Precision in the first tranche.

"The rest (of the funding) will be released depending on how fast we acquire a plant," he said.

He did not say how much stake GW Capital has in Gala Precision.

He said the company is also investing in research and development.

"We are putting together an R&D team to help scale up our knowledge base," Mr Gala said.

GW Capital's business manager, Mr Sanjay Arte, said the company may consider another round of funding for Gala Precision based on its growth. "If required, we can look into it," he said.

Gala Precision was funded out of GW Capital's second fund worth $150 million.

GW Capital has funded companies such as Biocon, Fab Mall, Shringar Cinema and Centurion Bank and it also owns an FM radio station, Radio City.

More Stories on : Announcements

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
KBX Motorbike's first board meet in Pune on Jan 24

Royal Classic plans IPO
Gala Precision gets Rs 50 cr from GW Capital — Money to be used for acquisitions, plant in Chennai
Innova, Corolla prices to go up
Reliance demerger comes into effect
Thomas Cook India to come under Dubai Investment fold
Capsugel acquires Bharti's capsule manufacturing biz
ONGC-CNPC jt venture buys Petro-Canada assets in Syria
SEBI unlikely to extend revised Clause 49 deadline
Salem Steel to get Rs 1,200-cr facelift
Fiserv launches Indian operations
Chennai Port Trust to set up desalination plant
Sasken to set up centre in Mexico
Hotel Leelaventure acquires land in Chennai, Hyderabad
JB Chemicals to set up Russian subsidiary
ONGC launches health info system
`Cos must integrate societal tasks at operational level'
GAIL sets up diagnostic centre
Mercator Lines board okays bonus issue
FACT revival among 21 issues CM to take up with Centre
Hydrocarbon sector — L&T eyes tie-ups for deep-water expertise
Pfizer proposes new launches — Separate divisions for therapeutic segments set up

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line