Aiming to become a global player, country's one of the leading tyre cord manufacturer SRF Ltd on Tuesday announced the acquisition of a Thailand-based firm Thai Baroda Industries (TBIL) for Rs 100 crore.
Formalising the takeover, the domestic firm has signed a definitive agreement with the Thai firm. “The acquisition will cost SRF approximately Rs 100 crore for the fixed assets and other transaction costs,” the SRF said. In addition, the company would also finance the working capital of TBIL as would be required on the date of the completion of the transaction, it added.
“We have always aspired to become a global leader in our business space and this acquisition is a significant step in that direction. Post the financial restructuring and subsequent take over of the management of TBIL, we are confident that we will be able to turn the company around in a very short time-frame,” SRF Ltd Managing Director Ashish Bharat Ram said.
TBIL has an annual production capacity of 12,000 tonnes of dipped nylon tyre cord fabric with annual sales of about $50 million. Post acquisition, and with four production units in India and one wholly-owned subsidiary in Dubai, the total annual capacity of tyre cord of SRF now stands at 65,000 tonnes. “This in turn will enable SRF to emerge as the third largest tyre cord fabric manufacturer in Asia,” the SRF said.
Source: Times of India