IT firm Danlaw Technologies India Ltd on Monday announced the acquisition of 100% stake in Titan Timeproducts Ltd (TTPL), a unit of Titan Company Ltd, for Rs 18.5 crore ($2.72 million) in a cash deal.
TTPL, an electronics manufacturing firm, is now a wholly-owned subsidiary of Danlaw Technologies.
Danlaw said in a stock exchange disclosure that the acquisition will give it a manufacturing base for products designed in-house. In addition, it will help with backward integration, the company added.
Hyderabad-based Danlaw Technologies is engaged in the business of providing automotive engineering services, developing software products, software services and security solutions.
The engineering division provides embedded software and hardware solutions.
Danlaw Technologies’ consolidated total income stood at Rs 20.3 crore in the financial year 2017-18. It reported a net profit of Rs 1.44 crore for the same period.
Incorporated in 1991, TTPL offers services in the medical, automotive, industrial controls, instrumentation and aerospace industries, according to its website.
The company has a manufacturing facility at Verna in Goa, which has an installed capacity to manufacture up to 80 lakh electronic circuit boards a year, according to a report by credit rating agency ICRA.
The company’s turnover rose from Rs 37.21 crore the financial year 2016-17 to Rs 39.89 crore in 2017-18.
As of 31 March 2018, TTPL’s net worth stood at Rs 18.25 crore.
Parent firm Tata Company Ltd, which makes jewellery and watches, is a joint venture between the Tata Group and Tamil Nadu Industrial Development Corporation.
In another deal in the electronics manufacturing space, Bengaluru-based Centum Electronics Ltd had agreed to sell its entire 51% stake in a joint venture with Rakon Ltd to the New Zealand electronics maker in April.