Industrial geared motors manufacturing company Premium Transmission has sold its Automotive Gear Business to Indsur Global, a manufacturer of insulator castings, for an undisclosed amount.
Mid-size machinery firm Premium Transmission is promoted by Karan Thapar(brother of multi-billion dollar Avantha Group chief Gautam Thapar) who also heads group companies such as Greaves Cotton among other entities.
Praveen Sachdev, chairman of Premium Transmission said, “The exit is to facilitate our continued focus in industrial sector which is our core area and constitutes more than ninety per cent of our revenues and profits. Further, Indsur is interested in expanding their automotive gear space and this deal gives them an opportunity to acquire an already profitable business and grow it further.”
For the year ended March 2010, Premium Transmission had revenues of Rs 318 crore with net profit of Rs 27.8 crore, according to VCCedge, the financial research platform of VCCircle.
Premium Transmission had recently announced an acquisition of a German company Stephan Rexnord Stephan GmbH & CoKG which manufactures industrial gear boxes & geared motors , from Rexnord LLC USA.
Indsur manufactures automobile castings at its Halol Plant and had some time back acquired the foundry business of HGI Industries an Aditya Birla Group firm. It also has a joint venture in China with world’s second largest insulator manufacturer Seves Group of Italy.
“The acquisition provides Indsur Group access to key customers, a strong platform for expansion and fits in line with the strategic vision of Indsur Group to complete value chain in its area of operations and have a strong presence in the growing automotive sector,” said, Ankur Lodha of Indsur.
Singhi Advisors, a boutique investment banking firm was the sole advisor to the transaction.