SRF acquires nylon tyre cord co in Thailand

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New Delhi, May 27:

Tyre cord maker SRF Ltd on Tuesday announced acquisition of Thai Baroda Industries Ltd (TBIL), a Thailand-based tyre cord company with an annual production capacity of approximately 12,000 tonnes of dipped nylon tyre cord fabric and annual sales of around $50 million.

Rs 100-cr cost of buy

The acquisition will cost SRF approximately Rs 100 crore for the fixed assets and other transaction costs, the company said in a release.

In addition, SRF will finance the working capital needs of the company as will be required on the date of completion of the transaction. The actual transfer of management control is, however, expected to take a few months being subject to the approval of the rehabilitation process by the Thailand Court, the release said.

Turning around

According to the company's Managing Director, Mr Ashish Bharat Ram, "Post financial restructuring and subsequent take over of the management of TBIL, we are confident that we will be able to turn the company around in a short time-frame".

Taken from Business Line

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