Manaksia eyes Polish alloy co

MUMBAI: Manaksia, a Kolkata-based maker of aluminium products, is in talks to buy a Polish aluminium alloy company having a turnover of roughly e130 million (approximately Rs 900 crore).

The size of the acquisition should be e22-25 million (roughly Rs 170 crore), a source familiar with the development said. The proposed acquisition of the target, which supplies its products to German automobile companies and enjoys a 25% market share there, will enable the Rs 1,147-crore Manaksia to gain a foothold in Europe���s auto-ancillary market, he said.

���The acquisition, if it goes through, will almost double Manaksia���s aluminium alloy capacity globally,��� said the source. Manaksia���s CFO, Dilip Patodia, declined to comment on the matter.

The source, who is aware of the acquisition plan, said the company will, most likely, use internal resources to fund the buyout. Manaksia mainly manufactures packaging products such as crowns and metal containers and fast moving consumer goods, in addition to aluminium-based products.

According to the source, other then Manaksia, two or three other companies are in the race to buy the Polish company and the buyout is expected to be done in three to five months. If the acquisition goes in Manaksia���s favour, it will join the long list of Indian companies that are looking to tap the lucrative auto market in Europe.