Wilbur Ross-owned International Automotive Component Group, a vehicle interior specialist, is scouting for acquisitions in India to expand its capacity and geographical reach to meet growing orders from automakers in India and double its business.
IAC is keen to acquire a company closer to Chennai or even Sanand in Gujarat, which could not only give it quick access into the auto manufacturing hub but also get some ready order book.
Gajanan Gandhe, executive director, India, and VP for South Asia, Africa at IAC, said within a couple of years of setting up new facilities, plants are operating at near capacity.
With the company winning new businesses, IAC will be setting up new facilities. “We are definitely going to grow faster than the market. The new plants may either be greenfield or brownfield — we are always discussing opportunities. We don’t want to do everything from scratch; just like the acquisition in the North gave us an opportunity with Suzuki, we may look to enter the Chennai or Sanand belt.”
In 2011, IAC had acquired Manesar-based Multivac India Private Ltd. IAC, which has been on the radar of Motherson Sumi, has been growing at a CAGR of 18% over the past three years in India and is sitting on 24-30 projects across various car makers.
People in the know said IAC would need at least Rs 100-150 crore in India as it is not only a component supplier but offers complete solutions, which will call for investment in R&D resources too. Gandhi, however, declined to comment on the exact quantum of investment required.
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Source: Economic Times
