Precision Camshafts Ltd (PCL) has acquired MEMCO Engineering Pvt Ltd, a precision component maker based in Nashik, Maharashtra. This is PCL’s maiden acquisition, which has been carried out for an undisclosed sum, the company noted. This acquisition is expected to make PCL a diversified components manufacturer, with introduction of niche automotive engine and non-engine components, and instrumentation parts.
PCL said its global sales and technical network will complement MEMCO to export its products, and the financial bandwidth of the company will also support larger, capital-intensive programs of MEMCO. The acquisition will result in synergies of know-how in manufacturing, automation and lean concepts, the company said.
MEMCO has global customers such as Bosch, Delphi, Endress+Hauser and Giro. The company has a capacity to produce 10.7 mn precision components. Its key products including fuel injection components for conventional and CRDi diesel engines; brake components; high pressure diesel injector connectors for naval ships and high precision instrumentation components.
PCL noted that in the recent past, it has won a global contract from General Motors for six million fully-finished camshafts over the life of the programme. The aggregate value of this
programme over its lifetime is estimated to be Rs 580 crore. In addition, PCL also acquired a global contract from Ford Motors for eight million fully-finished camshafts with an aggregate value of Rs 550 crore, it added. Both programs would start serial production in 2018-19.
Yatin Shah, Chairman and Managing Director, PCL, said the company is happy to announce the acquisition of MEMCO. This synergy will help PCL further strengthen its industry leadership and diversify into a new product range, he added. With the merged know-how in manufacturing and increased financial bandwidth from PCL, there is a great potential to scale the business in Nashik. We are already in contact with new and old customers to increase business as MEMCO,’ said Shah.,