| Though the exact size of the deal could not be ascertained, according to sources in Escorts, the deal is likely to be priced below Rs 10 crore. |
| Escorts Auto makes carburetors and is based at Faridabad near Delhi. It has a turnover of below Rs 25 crore and employs 150-200 people. Escorts and other group firms have a controlling stake in the venture. |
| The business, according to sources, made sense till Escorts was a unified group. But after the split within the Nanda brothers, whereby Anil Nanda got control of the auto components company Goetze, Escorts Auto fell outside the focus area of Escorts, an agri-business company. |
| "We realised that Escorts Auto Components was not that big for us to put any management focus. We were approached by Ucal Fuel Systems some time back. This fits well with its business of fuel transmission systems including carburetors. The acquisition will give Ucal Fuel Systems a good start in the north and a good market," sources added. |
| Till recently Escorts was a diversified group with interests in tractors and farm implements to two-wheelers, telecom etc. But it has exited from sectors such as two-wheelers and telecom to focus on the agri-business. |
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