Pune-based Alicon Castalloy, maker of aluminium alloy castings, today said it has acquired the castings business of Atlas Castalloy Ltd.
The deal includes transfer of plant and machinery of Atlas Castalloy against issue of equity shares to the existing shareholders.
The acquisition has been completed through an all-share deal, wherein existing shareholders of the acquired company have been issued 12.55 lakh equity shares of Alicon, a company statement said here.
Atlas Castalloy, which manufactures aluminium castings at its production facility at Chinchwad, Pune with a capacity of 6,000 MTPA, generated revenue of Rs 137 crore during financial year 2015.
"The acquisition will enable the company to achieve economies of scale with additional production capacities, optimal utilisation of resources and reduction in cost. This will give access to the company to expand its large customer base with addition of clients like Greaves Cotton Ltd, Royal Enfield Ltd, Piaggio and defence which are existing clients of Atlas Castalloy," Alicon Group CFO Vimal Gupta said.
Alicon Castalloy is one of the leading manufacturers of aluminium alloy castings in India and market leader in the manufacture of cylinder heads for two-wheelers.
Alicon has a massive 42 per cent share in the Indian two-wheeler segment.
Alicon Castalloy recently bagged two major orders from Europe and America. The company has entered into long term supply agreement of nine years with Detroit Diesel Corporation (Daimler), USA, amounting to USD 81 million for the supply of highly critical Aluminium components.
The company has also entered into the long-term supply agreement with a Tier-1 BMW Motorcycles supplier, Germany amounting to EURO 33 Million.
Although Alicon derives more than 90 per cent of its revenues from automotive sector, it has built a substantial client base in the healthcare, farming, infrastructure and construction, energy, aviation defence and other sectors.
Alicon group is hopeful of achieving a turnover of Rs 1,000 crore during 2017-18. With an equity base of Rs 5.50 crore, Alicon had a sales turnover of Rs 509 crore during 2014-15, the release said.