After merger, Phoenix Lamps will operate as a division of Suprajit Engineering and will continue to market itself under the Phoenix brand.
20 Apr 2016 | 14208 Views | By Shourya Harwani
Bangalore-based Suprajit Engineering and Phoenix Lamps have announced a proposal for merger of the two companies, after which the combined entity aims to grow 5-6% annually by enhancing its global footprint, the management said today in a conference call.
Suprajit Engineering is among the country’s leading automotive cable suppliers ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Bangalore-based Suprajit Engineering and Phoenix Lamps have announced a proposal for merger of the two companies, after which the combined entity aims to grow 5-6% annually by enhancing its global footprint, the management said today in a conference call.
Suprajit Engineering is among the country’s leading automotive cable suppliers with several global and domestic automotive OEMS as its clients such as Tata Motors, BMW, General Motors (India), Volkswagen, Ford India, Suzuki, Mahindra & Mahindra, Jaguar, Land Rover, Piaggio, Nissan, Lear Corporation, Eicher Motors, Swaraj Mazda, SAAB, Magna, Behr India, Inteva Products Automotive India and many others.
Meanwhile, the Noida-based Phoenix Lamps has a strong presence in the automotive lighting aftermarket business with exports to over 75 countries. Following the merger, the combined entity will use cross-selling as a strategy to gain market share both in India and abroad.
“Suprajit has a strong presence in south India, while Phoenix has a good standing in North India. The merger will not only help in creating synergies and gaining market share in India, but we will also improve our footprint globally. We are specifically focusing on improving our market share in SAARC nations and Europe.” said Ajith Kumar Rai, chairman of Suprajit Engineering and Phoenix Lamps.
Phoenix Lamps currently is a subsidiary of Suprajit Engineering wherein Suprajit currently owns 61.93% of Phoenix’s equity shareholding. According to the terms, the merger ratio has been set at 4 shares (Re 1 each) of Suprajit for every 5 shares (Rs 10 each) of Phoenix.
After merger, Phoenix Lamps will operate as a division of Suprajit Engineering and will continue to market itself under the Phoenix brand.
Suprajit expects the consolidated sales of combined entity for the current year to be in excess of Rs 1,100 crore with better financial ratios.
“This merger will bring significant synergies together. The combined entity will have a strong balance sheet, along with an excellent OEM customer base and in-depth aftermarket reach. This will also enhance cost efficiencies at various levels, better management bandwidth and reduced compliance requirements. This will be a win-win for both companies,” Rai had said earlier.