Autoline to acquire Stokota's global operations

New Delhi, Feb 26: Auto parts manufacturer Autoline Industries Ltd will acquire a 51 per cent stake in the global operations of Belgium's Stokota NV for Rs 66.8 crore in cash and equity.

The company will merge Stokota MV Stokota China and Stokota India with itself ''to form a conglomerate that will be a global leader in the manufacture of high-value, low cost automotive components and transportation solutions,'' Autoline Industries said.

The move seeks to use the integrated Autoline-Stokota design operations as the group's global hub for engineering, design and development.

''The group will leverage competitive advantage that India has in high-quality low-cost manufacturing, by outsourcing production of assembly parts for Stokota to the company's production centres,'' Autoline Industries added.

The integrated operations will service the European, African, West Asian and central Asian, American and Australia markets.

The merged entity also seeks to leverage up on India's strength as an English speaking nation to outsource business processes, its growing financial markets to raise funds, and management capabilities in manufacturing.

Stokota's existing business relationships in Europe will be used to create a sales channel for the auto components manufacturing for Volvo, Renault, Iveco, and Scania.

Autoline Industries is a design engineering manufacturing solutions provider focused on sheet metal assemblies and formed tubular products, with integrated engineering, tool design and manufacturing facilities in Pune.

Stokota NV with operations in Belgium, France, Poland, China, and India, has partnerships in over 16 European Union and Eastern European countries.

UNI