| The forging line has a turnover of over $800 million (Rs 3,200 crore) and ThysenKrupp is looking for a premium of 30 per cent to 40 per cent," said a person familiar with the development. |
| The forgings unit belongs to ThysenKrupp Technologies, a subsidiary of the $78 billion ThyssenKrupp AG. The company had sold its precision forging business to the Delhi-based Sona Group for an undisclosed amount in January. |
| ThyssenKrupp Technologies's mechanical components unit makes crankshafts through a forging line. It is this business that the Indian companies have been approached to bid for, sources familiar with the developments said. |
| ThyssenKrupp denied the move in an email response, but the Hinduja group confirmed it has initiated talks with investment bankers for the acquisition. M&M's President Hemant Luthra said the company did not want to comment and Bharat Forge did not respond to queries on the deal. |
| "An investment banker has approached us for the deal," confirmed Prabal Banerji, Hinduja Group's chief finance officer. |
| The group's Ennore Foundry is the country's largest automotive jobbing foundry with a production capacity of 48,000 million tonnes of grey iron casting. |
| "Talks are at an initial stage and we have to see if the deal is strategic to us," Banerji said. |
| Sources, however, said Bharat Forge is likely to be the most aggressive bidder for the unit which would make it the company world's largest player in the forging business. |
| The company is the largest exporter of auto components from India and a leading global chassis component manufacturer with manufacturing facilities spread over 10 locations and six countries, including three each in India and Germany. |
| The Mahindra group has been a late entrant in component manufacturing, starting operations only in 2004. The business unit aims to generate Rs 4,000 crore in turnover by 2010 with aggressive plans for acquisitions. |
| Group company Mahindra Forgings acquired Stokes Forgings in the UK, besides Jeco Holding AG and Schöneweiss GmbH in Germany. |
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