Farm equipment maker Escorts today announced divestment of its OEM and export business of auto product division to Pune’s Badve Engineering.
The company however did not disclose the deal size.
The all cash deal is part of the company’s planned strategic reorientation of the business to focus on core verticals in the agri-machinery, construction equipment and railway equipment, Escorts said in a statement.
“We believe that the transfer of OEM and export business to Badve Engineering will help us focus on our core areas. We are delighted that Badve Engineering has stepped in to take the business forward,” Escorts Auto Products & Escorts Railways Products CEO Dipankar Ghosh said.
Escort’s auto products business comprises an extensive product basket catering to OEMs and replacement market in India and overseas markets for all vehicle categories including motorcycles, scooters, passenger cars, commercial vehicles, and multi-utility vehicles.
“We are delighted to have acquired a business that has a good market standing and the versatility to produce an extensive range of auto components for various applications,” Shrikant Badve, Managing Director Badve Engineering said.
Escorts shares were trading at Rs 302 apiece on the BSE, up 16.20 per cent from previous close.
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