Amtek Auto Limited acquires 10% stake in Garima Buildporp Private Limited

Amtek Auto Ltd Monday acquired 10 per cent stake in Garima Buildporp Pvt Ltd. Garima Buildporp Pvt Ltd is the holding firm of OCL Iron and Steel Ltd. The deal is expected to enable Amtek Auto to source steel from Garima for manufacturing auto components. Garima Buildporp, a wholly owned subsidiary of Gateway Impex Private Limited, manufactures and sales steel and power generation.

Garima has been undertaking a series of investments as it seeks to bolster its position in the market. In the financial year 2009-10, Garima Buildorp acquired 60.83 per cent stake in OCL from the outgoing promoters of the company - Ragu Hari Dalmia and R H Damia Trust and further acquired 15.38 per cent stake from the general public through open offer, which resulted in acquisition of 76.21 per cent stake in the company and subsequently became the holding firm of OCL.

OCL Iron and Steel Limited, based in Rajgangpur in the eastern state of Orissa, manufactures and sells steel billets and sponge iron products in India. The company has captive iron and coal mines of around 5 million tonnes and 20 million tonnes respectively. It has a sponge unit with 20,000 tonne annual capacity and a 14 Mw power plant, working on waste heat produced by the plant.

Gateway Impex is engaged in the business of selling, importing and exporting of fabrics and textiles and is also engaged in the business of renting of properties. Amtek Auto is engaged in manufacturing automotive components like engines or suspension and transmission systems.

During September 2010 quarter, Amtek Auto's PAT rose by 78.85% to Rs.54.55 Cr from Rs.30.5 Cr in the same quarter last year. Company's total income rose by 46.88% to Rs.445.75 Cr for the same period.

Amtek Auto Ltd is a leading Engineering conglomerate, with a portfolio of $1.3 billion and a global footprint primarily in the automotive sector. Recently it has diversified into the Railway Wagon & Locomotive component manufacturing. Following this signing Mr John Flintham, CEO noted that the investment is another major development in the growth story of the Amtek Group and its diversified product portfolio in the Non Automotive sector.

He noted his delight over the merging of the two firms, adding that Amtek is glad to merge with Autech Corporation to use their advanced technology for the benefit of Indian society. It is anticipated that the production would commence during Year 2011 and will be based in the new manufacturing facility in Dharuhera, just outside Delhi, he said.

3 Jan 2011.