Bombay Burmah to sell springs unit to NHK for Rs 180.50 cr

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Bombay Burmah to sell springs unit to NHK for Rs 180.50 cr

Bombay Burmah Trading Corp has agreed to sell its BCL Springs division to NHK Automotive Components India, a unit of Japan’s NHK Springs Co for Rs 180.50 crore.

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Bombay Burmah Trading has agreed to sell its BCL Springs division to NHK Automotive Components India, a unit of Japan's NHK Springs Co for Rs 180.50 crore.

BCL Springs manufactures and markets various types of springs used in the automotive industry. Bombay Burmah said it is selling the division as a going concern on a slump sale basis to NHK Automotive.

Bombay Burmah shares surged post the announcement and were trading up 4.7% at Rs 477.60 on NSE in afternoon trade.

"The decision to sell BCL Springs division is in line with the corporation's policy to restructure its business portfolio to enable greater focus on its core activities," it said.

Bombay Burmah had last month agreed to sell its Sunmica division, manufacturing and marketing decorative and industrial laminates, to AICA Laminates India for Rs 100.30 crore. AICA Laminates is a subsidiary of Japan's AICA Kogyo.

Bombay Burmah Trading is a part of the Nusli Wadia group, and has interests in tea and coffee plantations, weighing products, dental and ophthalmic products among others.

Nachiket Kelkar
nachiket.kelkar@network18online.com