Lucas TVS acquires Sical''s auto component plant

08 August 2007

Chennai: Auto electricals manufacturer Lucas TVS Limited has acquired the auto component facility of Sical Logistics Limited at Maraimalai Nagar, near Chennai for Rs14.69 crore.

Formerly known as Indrad Auto, Sical Logistics'' auto component division made auto electricals. The division logged a turnover of Rs22 crore and a profit of Rs1.8 crore.

For a long time the logistics company was scouting for a buyer and had discussions with several global majors before zeroing in on Lucas TVS.

According to a Lucas TVS official who does not want to be quoted, said the acquisition would synergise with the company''s existing operations as the products made are similar. It would be a good fit for the TVS group company''s growth strategy.

With this asset disposal, Sical Logistics has realised a sum of Rs90.18 crore through its disinvestment process that started in 2006.

However the current sale does not include the high wattage engine cooling modules and motor wiper business of Indrad Auto. Sical Logistics has a technology transfer agreement with Gate SRL, Italy whereby it would source components from the Italian company and assemble the same at its Maraimalai Nagar facility.