US-based Federal-Mogul, an automotive component maker, has picked up 51 per cent stake in Anand Group’s Perfect Circle India Limited for $4 million (Rs 17 crore), reports Economic Times. This follows Federal-Mogul’s acquisition of the engine bearings unit from the Anand Group’s Gabriel. It had last year also bought out industrialist Anil Nanda’s stake in his JV, Goetze India. The entity is listed on the Bombay Stock Exchange as Federal-Mogul Goetze India. The report added that Federal-Mogul also plans to relocate some of its facilities from high-cost locations in Europe and the US to India.
Perfect Circle claims to be the largest exporter of piston rings in India. It also supplies materials to both the original equipment manufacturers and the aftermarkets. Perfect Circle was established as a joint venture between the Anand Group and Dana Corporation of US. Anand Group bought out stake of Dana in May last year and later delisted the company in September. Anand Group has a sales turnover of $634 million and expects it to go upto $1.3 billion by 2010. Of this, export market currently accounts for about 15 per cent of the total sales of existing products.
Federal-Mogul has recently announced it’s plans to build a new facility in Chennai to manufacture of friction components for OEMs and aftermarket segments. The operation are expected to commence by September next year and produce light vehicle brake and friction components, commercial vehicle and railway friction products. Federal-Mogul currently has six manufacturing facilities in the country. These facilities produce pistons, rings, liners, bearings, ignition and sintered products. It bought out the 24 per cent stake of its joint venture partner in Goetze, Anil Nanda, in 2006 for $32.5 million (Rs 130 crore).
Federal-Mogul recently announced record Q2 sales of $2 billion and a sharp rise in quarterly net income to $90 million. It has reported 50 per cent growth in sales to customers in BRIC (Brazil, Russia, India and China) markets during the quarter.