Auto product biz sale will help concentrate on core biz: Escorts

Escorts today said that it will be divesting its OEM and export business of auto product division to Pune-based Badve Engineering Ltd in an all cash deal. The loss-making division will involve transfer of assets including plant and equipment to Badve, says Bharat Madan, Group Financial Controller of Escorts. The company has not divulged any sale value yet. Since, it is an asset sale, value will depend upon the closing day value of the assets, which is 45-60 days away. The value of assets on that day will be basis for the sale value, he said. The auto product division was in loss, which is the main reason for divestment, and the sale will help Escorts concentrate on its core business of agri machinery and construction equipments, Madan told CNBC-TV18.Watch video for more..