Schaeffler India Limited to sell its chain drive business

The Board of Directors of Schaeffler India Limited at its meeting held today has, approved the sale of chain drive business undertaking of the Company as a going concern on a slump sale basis to CATENSYS India Private Limited (CIPL) for a lumpsum cash consideration of approx. INR 274 Mn. The final consideration is subject to the adjustments as on the date of sale as per the terms of Business Transfer Agreement to be executed.

The Turnover of the chain drive business was INR 1,070 Mn. for the FY2021 and turnover of the Schaeffler India Limited (the 'Company') was INR 55,605.1 Mn. for the FY2021. The turnover of the chain drive business is 1.92% of the total turnover of the Company.

The Net worth of the chain drive business is INR 155 Mn. for the FY2021 and the net worth of the Company is INR 36,536.7 Mn. for the FY2021. The Net worth of the chain drive business is 0.42% of the total turnover of the Company.

The Company has evaluated and decided to focus on the business areas having future growth potential and to take strategic options accordingly. In view of the not promising outlook of Chain Drive business, the Company has decided the strategic option of divestment of this business.

Source : Equity Bulls

Keywords

SchaefflerIndia BusinessSale ChainDriveBusiness SlumpSale