Asahi India Glass Ltd said on Friday it has formed a joint venture with a bunch of industry executives to acquire watch maker Timex Group’s precision engineering unit in India.
The joint venture company, Scopfy Components Pvt. Ltd, will acquire Timex Group Precision Engineering Ltd in cash, the glass maker said in a stock-exchange disclosure.
It didn’t disclose the deal value or the shareholding structure of the JV. The deal will be closed by March 2018.
Timex Group Precision is a wholly owned Indian subsidiary of Timex Nederland BV. Scopfy will see participation from investors including Padmini VNA Mechatronics founder Kabir Bhandari, YoNao Capital managing director Rahul Mookerjee and Info Edge (India) Ltd non-executive chairman Kapil Kapoor.
“This is a strategic and long-term investment for Asahi India, which will not only help the company in securing supply chain integrity through backward integration, but also diversify its operations,” said Sanjay Labroo, managing director, Asahi India Glass.
John Walker, senior vice president of global finance at Timex Group, said the sale was part of the group’s strategy to sharpen focus on its core business—designing, manufacturing and marketing innovative timepieces—and divest non-core assets.
Incorporated in 2008, Timex Group Precision Engineering makes tools, moulds and high-precision plastic components. The company had revenue of Rs 58.13 crore in 2016-17.
Asahi India Glass operates in three business segments – automotive, architectural and consumer glass. In 2016-17, the company’s consolidated income was Rs 2,614 crore and net profit was Rs 127.5 crore.