Solapur-based camshaft manufacturer Precision Camshafts Ltd (PCL) has announced its maiden acquisition. PCL will acquire Nashik-based precision machining company Memco Engineering.
PCL exports camshafts to US, Europe, South America, China and South Korea. Its key customers include General Motors, Ford Motor Company, Hyundai Motors, Maruti Suzuki, Mahindra & Mahindra, Tata Motors, Toyota, Fiat, Mercedes Benz, Porsche, SsangYong, Force Motors, Escorts and Mahle.
Memco Engineering is engaged in manufacturing, fabricating, buying selling, importing exporting, and all types of engineering components including repair of fuel injection equipment including parts, components, spare parts and accessories. As per a stock exchange filing in FY2016-17, Memco reported a turnover of Rs 31.62 crore, an increase of 16.51 percent over previous year and averaged growth of around 17 percent in last three years.
“With the merged know-how in manufacturing and increased financial bandwidth from PCL, there is a great potential to scale the business in Nashik. We are already in contact with new and old customers to increase business as Memco”, said Yatin Shah, chairman and MD, PCL.
Memco established in 1983, has been one of the key vendors to German Tier 1 supplier Bosch. It has a capacity to produce 10.7 million precision components. Memco’s key products include fuel injection components for conventional and CRDi diesel engines, brake components, high pressure diesel injector connectors for naval ships and high precision instrumentation components.
Commenting on the maiden acquisition, Ravidra Joshi, director and CFO, PCL said “It is a good first acquisition for PCL in terms of size, products, location and scalability.”
Rajan Dharkar and Vinita Dharkar will continue to run the show at Memco for the next two years. Along with helping PCL explore new business opportunities.