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Yash Birla Group is mulling the public listing of its newly proposed holding company for the group's auto component business, reports Business Standard. The group plans to invest Rs 120 crore over the next 18 months for enhancing capacities at all facilities at its four companies - Birla Kennametal (to be renamed Birla Precision Technologies), Birla Perucchini, Indian Tools Manufacturer (ITM) and Dagger Forst. These companies make shell moulded products, precision machine tools, broaches and HSS cutting tools. They are supplied to companies like Tata Motors, Hyundai and Cummins.
The report adds that the group is also looking at acquisitions in the auto comp business. Dinu Poonacha, group president, corporate strategy and planning, has been quoted as saying: "A number of proposals involving different auto component companies have been put forward (to us) by investment banking firms for takeovers. We are evaluating all the proposals."
The group is looking to double its turnover to Rs 400 crore by 2009-10 from the four companies from the current Rs 200 crore last year. Ernst & Young is advising the group on the financial restructuring and a final report is expected by mid-January.