Auto components makers in the West seem far more attractive targets for Indian companies than vehicle markets. In yet another international acquisition by an Indian company, RSB Transmissions has bought a 70 percent stake in Belgian construction equipment component maker Mechanical Supplies International (MSI). MSI manufactures heavy fabrication aggregates for excavators, off-highway machines and windmills.
Both MSI and RSB have identical technology, process and machines. Caterpillar, Belgium and Caterpillar France its major customers. RSB, which exports substantial heavy fabrications to Europe, can now have a front-end presence in Europe to consolidate and grow its exports.
RSB says heavy fabrications, which were otherwise logistically challenging to ferry from India to Europe, can now be offered by the RSB-MSI combine. Sub-assemblies will be made in India and the final assembly and finishing work can be done at MSI.
MSI’ sales revenue stood at 21 million Euros in 2008, and is expected to touch 28 million Euros by 2012 without additional investment. MSI is RSB's second overseas acquisition, after Michigan-based Miller Brothers Manufacturing, bought for $19 million in 2006
RSB, which expects to cross the Rs 1,000 crore mark during this fiscal, also plans to announce an IPO during the last quarter of 2010 to fund its new expansion plans.