Precision Camshafts plans acquisition in Europe

Precision Camshafts Ltd (PCL), the Solapur (Maharashtra)-based camshaft supplier, is scouting for an acquisition in Europe. It is looking to acquire a company with a turnover of 30-40 million euros (Rs 244 crore to Rs 325 crore). The acquisition may be done in a year from now. “The key reason behind the acquisition is to be close to customers,” says Yatin Shah, chairman and managing director, PCL.

The acquisition plan is part of PCL’s aggressive target of growing its annual turnover from the current level of Rs 500 crore to Rs 1,250 crore by 2017. The mother plant in Solapur is expected to generate Rs 750 crore out of that targeted figure.

PCL, which is a leader in chilled cast iron camshafts, is taking steps to climb the technology curve. Recently, it introduced ‘Ductile Iron Induction Hardened’ camshafts to its portfolio. It has also struck a technical alliance with EMAG of Germany, which will help it enter the assembled camshaft market. The pact includes the development of a low-cost version of the technology. PCL will hold a global patent for it for the next five years.

With the entry into the assembled camshaft business, PCL plans to reach annual sales of 4 to 5 million camshafts in Europe by 2017. The new moves have helped PCL become a one-stop-solution for camshafts required by midsize passenger cars globally.  The all-under-one-roof Precision Camshafts produces over 150 varieties of camshafts, serving over 20 clients in the automobile industry. PCL, which supplies to over 20 domestic and foreign vehicle manufacturers, specialises in the manufacturing of camshafts required in the small and midsize passenger vehicle segment globally and has a global market share of 8 percent in this segment.

PCL has lined up an investment plan of Rs 200-300 crore for the next 2-3 years. This includes the planned acquisition in Europe.

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Precision Camshafts inks tech pact with EMAG AG, aims to be one-stop global shop bit.ly/1pm5bap