Precision Camshafts acquires Germany’s MFT

Global auto ancillary major Precision Camshafts Ltd (PCL) has made its second acquisition with the takeover of German precision machinist MFT Motoren und Fahrzeugtechnik GmbH (MFT) through its wholly owned Dutch subsidiary, PCL (International) Holding BV.

According to the company, PCL, a one-stop solution for Camshaft’s chilled cast iron, ductile iron, hybrid and assembled products, has set a global benchmark in quality due to strong systems, technology and processes and has exported over 60 million camshafts without a single field failure since its inception. The company has an enviable client roster including global OEMs such as Ford Motors, General Motors, Toyota, Maruti Suzuki, Hyundai, Daimler and Porsche.

Announcing the latest acquisition, Yatin Shah, PCL’s chairman and managing director, said: “I am glad to announce the acquisition of MFT, Germany. This acquisition is value accretive which will open up synergetic opportunities for us through new product offerings and will establish a global brand presence. MFT will not only complement our relationships with current OEMs in that region but will also help in enhancing our customer base. With MEMCO and MFT on board, we are gradually progressing towards attaining our goal of transforming the business profile, while the key focus area continues to be our legacy business. Further, we remain committed to execute our planned business initiatives and capitalize on larger growth opportunities at hand.”

MFT has long-term relationships with global customers like Volkswagen, Audi, Opel, Westfalia, Hatz and Suzuki. MFT’s key products include balancer shafts, camshafts, bearing caps, engine brackets and several non-engine prismatic components. Located close to the Polish and Czech border, MFT manufacturers critical components.

“With PCL as our majority investor, MFT is expanding its global footprint. It will allow us to get better access to the development departments of the German and European car manufacturers. This will enable us to actively shape the disruptive changes in the automotive industry and prepare ourselves for the challenges in the future development of the conventional powertrain and become part of the alternative drivetrain technologies. This also offers us and our employees a new vision for a successful future. We are excited to walk that way with PCL to take advantage of this opportunity and generate sustainable growth for the entire PCL Group,” said Guido Glinski, MFT managing director. Glinski will continue to own 24 percent of the business and run the show at MFT.

Ravindra Joshi, director and CFO, said, “With the acquisition of MEMCO complementing our growth plans, we now look forward to MFT contributing to the value add. The result of the current expansion phase both organic and inorganic will be mostly witnessed in the next financial year.”

“PCL has begun its journey towards global expansion by leveraging on its strong balance sheet to set a footprint in the vast European market. With the merged know-how in manufacturing, increased financial bandwidth from PCL and proximity to European customers, there lies a great potential to scale the business in Europe. Our focus remains to increase wallet share among existing customers of the acquired companies,” said Karan Shah, PCL business development executive.

In the recent past, PCL has won a global contract from General Motors with aggregate value of Rs 580 crore over the lifetime and a global contract from Ford Motors with an aggregate value of Rs 550 crore. Both programs are on track and will start serial production in FY2018-19. In addition to this, PCL has been recently awarded with new contracts for fully machined camshafts from Ford, General Motors and Mahindra & Mahindra with aggregate value of Rs 275 crore.