MERGER & ACUISITION

- AUTO ANCILLARY SECTOR

PRESENTED BY
MANISH AGARWAL (A-1)
ATANU SARKAR (A-5)
KALPIT BABEL (A-6)
ABHISHEK BADALA (A-7)
AMIT BAGRE (A-8)
ANUSHREE BAPNA (A-11)
 AUTO ANCILLARY SECTOR
OVERVIEW
• One of the UPCOMING industries of the
Indian economy.
• Indian auto component industry is quite
comprehensive with around 500 firms in the
organised sector producing practically all
parts and more than 10,000 firms in small
unorganised sector, in tierized format.
• India enjoys cost advantage with regard to
castings and forgings.
COMPONENT-WISE SHARE OF
PRODUCTION
CAPABILITY OF INDIAN
COMPONENT SUPPLIER
 AUTO-COMPONENT
PRODUCTION

Production of auto ancillaries has been growing at a

robust 20 per cent
per annum since 2000.
 AUTO COMPONENT EXPORTS
• Exports of auto components have been
strong growing at 24 per cent per annum
since 2000.
• This growth in exports if sustained for
another five years will see India’s auto
components exports will touch USD 5
billion by 2011 from the USD 3.6 billion at
present.
DIRECTION OF EXPORTS
MAJOR PLAYERS
 CASE STUDY
of
ACQUISITION

BHARAT FORGE => CDP

ALUMINIUMTECHNIK
 BHARAT FORGE LTD.

• Bharat Forge Ltd. is the flagship company of the over

$ 2.4 billion Kalyani Group.
• A major player in the commercial vehicle segment.
• It is the second largest forging company in the world.
• The company also claims global leadership in the
commercial vehicle chassis segment.
• It is a global corporation with world-class engineering
capabilities, state-of-the-art manufacturing facilities
and a global customer base.
 HIGHLIGHTS
• Bharat Forge has acquired 100%
ownership interest in CDP AT in an
all cash deal
• Acquisition marks the entry of the
company into the hi-end and fast
growing aluminium auto-
component business.
• This is company’s second
acquisition in Germany after CDP
Bharat Forge GmbH.
• The acquisition strengthens the
company’s position in the chassis
component business
 KEY OBJECTIVES OF GLOBAL
STRATEGY

• De-risked business. Products, Geographies

& customers.
• Strong and definite evolution from being a
component supplier to being a development
partner with global OEM customers
• Work closely with our customers for
identifying new business opportunities for
BFL to create a win-win situation for both.
• Strengthen Dual Shore supply capability
 FUNDING PATTERN

• Bharat Forge has acquired. CDP at the

enterprise value of Euro (€) 6.30 Million.
 STRATEGY
• This acquisition was a gateway pass for
the company into aluminium auto
component business
• This process was a step towards attaining
global leadership.
• Enhancing company’s product range &
technical capabilities, in both steel and
aluminium.
• To enlarge its product offerings for a
potential value added systems &
assembly market.
 BENEFITS
• The acquisition will significantly strengthen the
company’s position in the global Passenger Car &
Chassis Component business.
• Enabling existing customer’s to source complete
spectrum of forged auto components.
• Adding international clientele base such as BMW,
Audi, Volkswagen, Ford, etc.
• Initial period after acquisition witnessed significant
improvement in the sales and PBT to Rs 561 crores
and Rs 40 crores respectively.
 CASE STUDY of a JOINT
VENTURE
ANAND AUTOMOTIVE LTD : TAKATA LTD
 ANAND AUTOMOTIVE SYSTEM : TAKATA
CORORATION
• It is a leading manufacturer of
automotive components and
systems in India.
• Group comprises 18 companies
with 36 manufacturing locations
spread in 9 states across the
country.
• Group's capability to set up the
state-of-the-art and highly
productive plants with in-house
expertise, gives it a competitive
edge.
• It is a leading global
supplier of automotive
safety systems .
• It is engaged in the
manufacture and sale
of safety systems for
automobiles, including
seatbelts, airbags, and
steering wheels.
 HIGHLIGHTS
HIGHLIGHTS

• The joint investment is likely to be around Rs 230

crore for setting up a plant in Neemrana near
Delhi and another in Chennai.
• The new entity will be known as Takata India Pvt
Ltd (TIPL), Takata corp. as major stakeholder &
Anand automotive as minor.
• It is wholly-owned subsidiary in India.
• TIPL will focus on various occupant safety systems
for passenger cars, SUVs, MUVs and MPVs.
 SYNERGY
SYNERGY

• Takata will enter Indian market JOINT VENTURING

with Rs.3000 cr company employing about 7,500
professionals and makes diverse parts.
• Anand Automotive will experience international
technology.
• Both plants(Delhi & Chennai)will manufacture
seatbelts, airbags and steering wheels,and will
cater to the Indian domestic automobile
companies.
OTHER CASE STUDIES
THANK YOU