ThyssenKrupp scouts for Indian JV partner
German component giant ThyssenKrupp is understood to be looking for a buyer or a JV partner for one of its global crankshaft facilities and major Indian component players such as Mahindra & Mahindra, Bharat Forge and Amtek have been sounded out on...
NEW DELHI/MUMBAI: German component giant ThyssenKrupp is understood to be looking for a buyer or a JV partner for one of its global crankshaft facilities and major Indian component players such as Mahindra & Mahindra, Bharat Forge and Amtek have been sounded out on the possible transaction.
But the deal size, which is likely to be around the range of $500 million or Rs 2,000 crore may be a concern, said sources. ThyssenKrupp owns a crankshaft business in the US as well as Europe.
An email query to ThyssenKrupp went unanswered. The Indian players ET spoke to were non-committal. Hemant Luthra, president, Systech, and a member of the M&M board, said: ���We look out for every opportunity to increase share value and exploit synergy.��� According to Bharat Forge CMD Baba Kalyani, ���I don���t think the crankshaft facilities are up for sale and I am not entering into any JV with ThyssenKrupp���.
The decision to look for a buyer/partner for its crankshaft business is part of a larger strategy by Thyssen Krupp to sell some of its automotive assets. The German giant recently sold off its precision forging business to Sona Okegawa for an undisclosed amount.
As a matter of fact, some sources in the auto industry says ThyssenKrupp is also looking at selling its overall forging business. Sources, however, said the deal size is likely be too big for an Indian company and the unit is most likely to go to a private equity player. ThyssenKrupp���s automotive business is worth around $10 billion.
ThyssenKrupp Crankshaft Company is part of ThyssenKrupp Technologies, one of the five segments of the overall ThyssenKrupp Group, and produces a wide range of forged and machined crankshafts ready-to-install for the North American market. The E 51-billion (approximately $70-billion) steel, capital goods and services group is a German diversified forging giant with 1,90,000 employees worldwide. Its crankshaft business, which includes plants in Europe and the US, contributes substantially to the overall sales of German firms.
The crankshaft business is of particular interest to Indian companies because it enjoys around 40% marketshare in West Europe. The component major also has a large footprint in truck and car business. ���This makes it more attractive for the Indian component players who are currently scaling up their global presence,��� said an auto analyst. In the past two years, M&M, Bharat Forge and Amtek have all been active in striking deals in European markets.
But even as it scouts for a partner for the overseas facility, analysts said Thyssen was looking for a possible JV in India. ���ThyssenKrupp had wanted majority control in a JV in India and the Indian component majors were unwilling to give it,��� said an official from a Mumbai-based component major, citing the delay in striking the deal.
But the deal size, which is likely to be around the range of $500 million or Rs 2,000 crore may be a concern, said sources. ThyssenKrupp owns a crankshaft business in the US as well as Europe.
An email query to ThyssenKrupp went unanswered. The Indian players ET spoke to were non-committal. Hemant Luthra, president, Systech, and a member of the M&M board, said: ���We look out for every opportunity to increase share value and exploit synergy.��� According to Bharat Forge CMD Baba Kalyani, ���I don���t think the crankshaft facilities are up for sale and I am not entering into any JV with ThyssenKrupp���.
The decision to look for a buyer/partner for its crankshaft business is part of a larger strategy by Thyssen Krupp to sell some of its automotive assets. The German giant recently sold off its precision forging business to Sona Okegawa for an undisclosed amount.
As a matter of fact, some sources in the auto industry says ThyssenKrupp is also looking at selling its overall forging business. Sources, however, said the deal size is likely be too big for an Indian company and the unit is most likely to go to a private equity player. ThyssenKrupp���s automotive business is worth around $10 billion.
ThyssenKrupp Crankshaft Company is part of ThyssenKrupp Technologies, one of the five segments of the overall ThyssenKrupp Group, and produces a wide range of forged and machined crankshafts ready-to-install for the North American market. The E 51-billion (approximately $70-billion) steel, capital goods and services group is a German diversified forging giant with 1,90,000 employees worldwide. Its crankshaft business, which includes plants in Europe and the US, contributes substantially to the overall sales of German firms.
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The crankshaft business is of particular interest to Indian companies because it enjoys around 40% marketshare in West Europe. The component major also has a large footprint in truck and car business. ���This makes it more attractive for the Indian component players who are currently scaling up their global presence,��� said an auto analyst. In the past two years, M&M, Bharat Forge and Amtek have all been active in striking deals in European markets.
But even as it scouts for a partner for the overseas facility, analysts said Thyssen was looking for a possible JV in India. ���ThyssenKrupp had wanted majority control in a JV in India and the Indian component majors were unwilling to give it,��� said an official from a Mumbai-based component major, citing the delay in striking the deal.
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