Asahi India Glass acquires Timex Group Precision Engineering

Asahi India Glass (AIS), the joint venture between B M Labroo & Associates, Asahi Glass Co (Japan) and Maruti Suzuki India, one of the leading integrated glass companies in the country, along with Padmini VNA Mechatronics, Kapil Kapoor and Rahul Mookerjee, has jointly acquired the Noida-based Timex Group Precision Engineering (TGPEL), a subsidiary of Timex Group USA.

The acquisition will be done through a proposed joint venture (JV), Scopfy Components that is being formed along with other investors. The company has not disclosed the acquisition cost. The acquisition is part of AIS’ backward integration plans.

TGPEL is the Indian subsidiary of Timex Nederland, part of the Timex Group. The subsidiary was started for captive production of precision engineered parts to be used in watches. Today, the company has diversified its operations across the entire value chain providing end-to-end solutions from mould conceptualisation and design to producing the final plastic injection moulded components and product assembly parts used in the automobile, electrical equipment, construction and consumer goods sectors.

Sanjay Labroo, MD and CEO, AIS said, “This is a strategic and long-term investment for AIS, which will not only help in securing supply chain integrity through a backward integration, but also diversify our operations, further complementing and consolidating our position as a value added and integrated supplier. Tier 2 upgradation has been widely regarded as the key for future and AIS has been focussing on upgradation and streamlining its key Tier 2 suppliers.”

Kapil Kappor, ex-global COO Timex Global and chairman Timex India, said, “Timex has built a reputation as one of the foremost watch companies in the world. Its unique expertise in precision engineering and assembly line process has been honed for over 25 years to establish TGPEL as one of the top precision engineering companies in India.”

Kabir Bhandari, CEO, Padmini VNA Mechatronics, said, “TGPEL offers unique advantage of precision engineering and has the capabilities of further diversifying its offering into various other industries as well as value addition in its products. I see this as a strategic investment that will help both companies to growth with each leveraging its unique strengths.”

Rahul Mookerjee, MD, YoNao Capital and founder Ashoka University, said “This truly is a unique combination of investors, with each of us thinking in the long term, and having invested as value-driven shareholders.”

Commenting on the sale of its subsidiary, John Walker, senior vice- president, Global Finance at Timex Group, said: “Timex Group is sharpening its focus on our core business, which is designing, manufacturing and marketing innovative timepieces around the world. After careful consideration, Timex Group has decided to transistion ownership of this valuable non-core asset to a new investor group. We believe this deicison is mutually beneficial to both TGEPL and Timex Group.”