Uma Precision buys 51% in Kontak for Rs 175 cr

Precision engineering company, Uma Precision, has acquired 51 per cent equity stake in Kontak Comforts (KCPL). Uma Precision MD Rajendra Kankaria said the deal was finalised at a consideration of Rs 1.75 crore.

Both Uma Precision and KCPL have been promoted by Kankaria brothers and a part of the holding of each of the brothers has been moved to Uma Precision, Kankaria said.

Kankaria said the move was in tune with the company's diversification plans, under which it wants to extend its products to not just automobiles sector but to retail consumers as well.

KCPL manufactures rubberised coir foam mattresses, spring mattresses, pillows and seats which is supplied to automobile sector, government enterprises and service sectors.

"Uma Precision is planning to launch its factory retail outlets for bedroom furnishing at Pune and hopes to spread the business to all bigger cities in the future," Kankaria said.

In 2005-06, KCPL posted a turnover of Rs 12 crore as against Rs 6 crore in 2004-05. For 2006-07 the company has projected turnover of around Rs 20 crore.

Uma Group's sales for the year 2005-06 were Rs 96 crore with export of Rs 7 crore, Kankaria said.

Uma Precision is a manufacturer and exporter of precision assemblies, systems and machined parts for auto and electrical industry, with more than 800 different components for auto and electrical industries in its product portfolio.

The company has plants in Pune, Ahmednagar, and Aurangabad in Maharashtra and Hosur in Karnataka.