Clutch Auto to acquire assets of Gurukripa Founders & Engineers, Ahmedabad

Clutch Auto Ltd has announced that the Board of Directors of the Company at its meeting held on January 30, 2007 has approved, in principle, to acquire the Assets namely, Land & Building, Plant & Machinery and other assets of M/s. Gurukripa Founders & Engineers (GKF), Ahmedabad (a promoters concern). GKF is engaged in the production of high quality CI Castings required for Auto Component Industry. This firm is having current Installed Capacity of 750 MT per month. Acquisition of Assets of GKF will be a step in Vertical Integration for the Company which will provide direct control on uninterrupted supply of Clutch Castings, GKF being a source approved by leading vehicle manufacturers like Tata Motors, Mahindra & Mahindra and Ashok Leyland besides important foreign customers.

GKF will support the Company with the flexibility to develop new products, augment capacities and alter product-mix on short notice besides keeping control on cost inputs as well as acting towards cost competitiveness from other sources of supplies.

The Company proposes to increase the Installed Capacity of GKF immediately to 1200 MT p.m. to meet increasing demand of customers both in domestic and export markets, Castings being the main constraint towards optimal utilization of capacities.

The above acquisition Will be funded through Company's internal accruals.

Source : Equity Bulls

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