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Home arrow Auto component arrow Denso India Ltd to sell its small motors business For Rs 147.7 Cr
Denso India Ltd to sell its small motors business For Rs 147.7 Cr Print E-mail
Written by Vijay   
Tuesday, 15 November 2011
Mumbai: Denso India Ltd plans to sell its small motors business to Denso Haryana Pvt. Ltd. for a cash consideration of Rs. 1,477 million. The sale will involve transfer of all assets (tangible and intangible), employees etc. The Board of Directors of the Company at its meeting held on November 12, 2011, has granted its approval to the Company to sell its small motors business.

Denso Haryana, a wholly owned arm of Denso, is into manufacturing and sales of fuel pumps, injectors, engine ECUs and ISCV.

The Board of Directors of the Company at its meeting held on October 04, 2011, has examined and discussed alternatives to improve the profitability of the Company and decided that there is a need to re-align / restructures the business segments to address operational and economic constraints and to focus on areas of future growth.

The Board decided to focus more on electrical parts business i.e. Alternator and Starter (in case of 4 wheelers) and CDI and Magneto (in case of 2-wheelers) businesses and to exit small motors business subject to valuation and requisite approvals.

The Board authorized Mr. Koji Shiga, Managing Director, to initiate the necessary steps for consideration and decision by the Board in this regard in the next meeting.

Japan’s Denso owns 52.9 per cent in Denso India. Maruti Suzuki and Sumitomo each own around 10.27 per cent in the firm.

 
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