Shares of Schaeffler India Limited rose over a percent to Rs 3,070 in early trade on August 29 after the company announced that its board has approved the acquisition of KRSV Innovative Auto Solutions Pvt Ltd, or Koovers, for about Rs 142 crore.
Koovers is a Bengaluru-based B2B company (business to business) that offers spare parts solutions in the Indian aftermarket workshops.
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Furthermore, the transaction is expected to be completed in the third quarter of the current financial year. "This acquisition will be fully funded by own cash generation," Schaeffler India said in an exchange filing.
"This acquisition presents an ideal synergy for Schaeffler’s future aftersales activities in India. It will be a key enabler for the aftermarket ecosystem, including distribution partners and help to play an important role in the fast growing and evolving aftermarket digital landscape," the company said in a statement on August 28.
Capacity expansion
In June, the German industrial and automotive component supplier announced the inauguration of a new manufacturing unit at its Savli (Vadodara) facility in Gujarat.
The new unit will add additional capacities of over 10,000 sq. m of production space to the existing plant, and cater to the growing demand in the wind, heavy industries, and railway sectors, the company said.
The capacity expansion will enable the plant to manufacture spherical roller bearings (SRB) and spherical rollers, while also expanding its heat treatment capabilities, it said.
The company manufactures high-precision components and systems for drive train and chassis applications as well as rolling and plain bearing solutions.
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