Bangalore-based automotive cable manufacturing company Suprajit Engineering Ltd is acquiring speedo cable business of automotive components manufacturer Pricol Ltd for an undisclosed amount on slump sale basis, as per a stock market disclosure.
The speedo cable business has an annual sales of around Rs 10 crore with major OEM’s and aftermarket customers. The company is in the process of transferring the plant and machinery from Pricol and will relocate the same to one of its facilities at Bangalore.
Established in 1972, Coimbatore-based Pricol (earlier known as Premier Instruments & Controls Ltd) manufactures and markets automotive components like dashboard instrument, speedometer cables, oil pumps, disc brakes, sensors, oil pumps, industrial gauges, vehicle security systems.
Last year in April, Japanese firm Denso Corporation had picked 51 per cent stake in Pricol Components, a subsidiary of Pricol.
In 2012, the company hived-off its plant in Pune into a JV with Johnson Controls Enterprises UK Ltd (a wholly owned subsidiary of Johnson Controls Inc).
Suprajit Engineering, a part of Suprajit Group, was incorporated in 1985. The firm offers a range of linear, non-linear, and push-pull cables for two wheelers, cars, commercial vehicles and manufactures original equipment such as washing machines, material handling, earthmoving equipment, and marine applications.
Apart from Suprajit Engineering Ltd, Suprajit Group comprises Suprajit Automotive Ltd and Suprajit Europe Ltd. The group specialises in automotive cables.
Shares of Suprajit Engineering closed at Rs 125.05 each, down 0.75 per cent on BSE in a flat Mumbai market on Monday.