Tuesday, July 12, 2005

Raymond claims stake in RPAL

One of the leading brands of India, Raymond Ltd, is now set to foray into the auto industries sector. Raymond Ltd, will acquire a 69.17 per cent stake in Ring Plus Aqua Ltd (RPAL), an auto part company, for a consideration of Rs 21.05 crore. Raymond Ltd has taken such a descision to tap the growing auto market in India. As per the arrangement, Raymond would acquire 51 per cent stake from ICICI Venture Fund with which the company's equity was lying and the remaining share from RPAL's original promoters for Rs 21.05 crore. With the aquisition Raymond Ltd will now enter the starter ring gears and integral shift bearings market. RPAL has its manufacturing units at Sinnar near Nashik. In yet another deal on the engineering business front, Raymonds had yesterday announced the signing of a joint venture agreement with France based MOB Outillage SA to manufacture files and rasps in India at a total project cost of Rs 21 crore. The tie ups with companies like RPAL and MoB would help in strengthening of the brands engineering segment and the business is expected to double in the next couple of years. Company officials pegged the groups engineering business at Rs 200 crores and expected the business to grow upto Rs 300 crore by 2006-07.