Hi-Tech Gears trying for acquisitions in the West
Auto component manufacturer, Hi-Tech Gears is on a shopping spree. The company is seeking westwards opportunities for the deal. Hi-Tech Gears has also said in one of its statements that it is exploring for acquisitions in the markets of Unites States and Europe. The company further added that the planned deal will probably be made final by the next fiscal year.
At present, with the progressing market of automobiles, the ancillary industries are making efforts for pumping more and more money for providing support to the increasing demand. It has been estimated that the automobile market is growing at thirty percent.
The auto component maker - Hi-Tech Gears is also spending a sum of one hundred fifty crore rupees in the domestic market. This investment by the company aims at establishing two new facilities in the coming three years’ time. Also, Hi-Tech Gears is establishing its sixth facility at Bhiwadi, Rajasthan. This facility at Rajasthan will soon be commissioned till the end of the present fiscal. This move will also provide support to the company by strengthening its position in the transmission space. At present, the company supplies transmissions to a lot of global firms which include Caterpillar, General Motors and Cummins. Hi-Tech Gears also supplies transmissions to certain domestic firms, for example, Tata Cummins, New Holland and Hero Honda.
Deep Kapuria, Chairman, Hi-Tech Gears commented that they are all set for acquisitions in Europe and the United States. He further added that the company has just begun its talks with certain firms. Kapuria also commented that the company was quite close for acquiring an automotive transmission firm in the United States in the year 2008 but because of the downturn, it had to abandon that deal. He further added that as the market of US has now recovered, the company will make all its efforts for having acquisition in Unites States. During the time of downturn, there were numerous small companies which folded up, so, now there are a lot of opportunities for the Indian companies to fill that gap, added Kapuria.
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