Uma Precision buys out Bangalore firm

Component manufacturer Uma Precision (UPL) on Wednesday announced the acquisition of a Bangalore company, Gera Auto Industries, for Rs two crore. The company has intentions to acquire firms in the US and UK too.

This acquisition is the first step towards the company's Rs 50 crore expansion plan announced a fortnight earlier. Rajendra Kankaria, managing director, UPL, said, "We have acquired Gera Auto for Rs two crore and will be making further investments of Rs 3.5 crore into the company."

"In 12 months, we will acquire firms in the US and UK to become a global player," he said.

Kankaria refused to divulge further details on these acquisitions.

He said, "We are currently studying a few proposals, but it's too early to reveal anything right now."

Elaborating on his Bangalore plans, he says, "Gera Auto currently employs 80 people and we will take this count up to 150 in 12 months. We will also be expanding the production capacity of the unit from its current one million units to three million units. We will be investing in eight multiple spindle automat machines."

The acquisition gives UPL a base in Bangalore and marks its foray into multiple spindle automats from single spindle.

"We currently manufacture 800 different components for auto and electrical companies and will now be adding a 100 more components to our portfolio such as special ball and socket joints, pipe union bolts and others. The acquisition also makes it possible for us to switch over to multiple spindle automats as against the current single spindle technology."

The Rs 66 crore company is aggressive about tapping the huge potential in the Indian and global markets.

Kankaria said, "We expect to cross Rs 90 crore turnover mark this fiscal. We will also recruit 1,000 people this year to take our headcount to 2,600."

The company is confident about doubling revenues from exports in the coming years. Kankaria said, "We will have exports of Rs seven crore this fiscal, and increase to Rs 20 crore in the next fiscal."