Gurgaon-based Sandhar Technologies has acquired Mag Engineering, a specialist in sheet metal fabrication for industrial requirements in light and medium categories in Bangalore. The acquisition, which cost Sandhar between Rs 70-90 crore, has been funded through internal accruals and debt.
While Sandhar has not yet finalised further investments in revamping Mag, it has plans to extend Mag's footprint in north India and offer its products to customers there. With this acquisition, an increase in the non-automotive business and in precision fabrication is in the pipeline.
Through its Sandhar Caama JV, the Sandhar Group is already involved in sheet metal fabrication and, now with Mag, expects to clock Rs 100 crore in the first full year of operations.
Mag Engineering, which has three units in Bangalore, produces operator cabins, canopies, housings, panels, switchboards, control cabinets and a variety of hi-precision sheet metal components. It has a capacity of 2,000 driver cabins per month.Its key customers include construction equipment majors like L&T Komatsu, Telcon, Caterpillar, Volvo Construction, Bharat Fritz Werner, Komatsu India, GE Healthcare and Faiveley Transport. Mag also exports to GE Medical and Caterpillar.
Jayant Davar, founder, vice-chairman and MD of the Sandhar Group, says this acquisition will help it to consolidate its sheet metal and fabrication businesses, driving it towards more niche products.
“Mag Engineering will give Sandhar an opportunity to offer new products to its existing and new customers,” he said. The Rs1,280 crore Sandhar Group has 21 units including Sandhar Technologies Barcelona S.L, Spain, Sandhar Tooling and two JVs in Indo Tooling and Sandhar Caama Components.
Sandhar manufactures handles, latches, hinges, stamped and tubular components, plastic injected components, zinc and aluminium pressure die castings, moulds and dies as well as structural parts for off-highway vehicles. It has a separate unit for supply of steel wheel rims and assemblies, handlebars, clutch and brake panels for two-wheeler manufacturers.
SHOBHA MATHUR