Auto Components India

Ratan Tata , who personally led the search for the past six months, Forsterâ??s appointment on February 15 as group chief executive officer (CEO) is more than just a badge of honour. It is a part of his larger plan to transform Tata Motors into a serious contender in the international arena.

Forster comes in with top-notch credentials for the job at hand. In his previous job, Forster, who started his career with consulting firm McKinsey, was the group vice president and member of the General Motors (GM) automotive strategy and was responsible for GMâ??s activities in Europe. He has earlier handled restructuring and new product innovations for two of GMâ??s brands, Opel and Saab. Prior to joining GM, Forster was a director on the board of BMW, leading product development during its ownership of MG Rover and Land Rover.

And the manner in which he exited from GM in November last year speaks a lot about the man. For over eight months, Forster had painstakingly led negotiations to sell GMâ??s troubled brands, Opel and Vauxhall, to Magna International, a leading auto components company. GM went back and forth, initially deciding that it will sell to Magna, then asking for another bid before returning to Magna, only to finally call off the deal. Speaking to Germanyâ??s Bild Daily after the deal was called off, Forster said, â??Such a sudden shift isnâ??t comprehensible. I hoped that it would have come to a much different outcome.â?? Forster left GM subsequently.

Full Story: Forbes India: Herr Forster takes charge of Tata Motors - IBNLive.com

The company has shut operations after the workmen resorted to a flash strike and assaulted an officer over wage revision. The immediate impact of the lockout is on a Rs 30-crore order from Maruti Suzuki, which the company has lost while orders from OEMs like Tata, Hyundai, Ford and M&M are also under threat.

?The company has decided to shut down considering the safety of employees, machinery and other installations,? said N Umesh, vice president of Bosch?s Naganathapura plant.

The impact of the lock out could also affect the company's main auto component manufacturing plant in the same city at Adugodi. Umesh said workers are in a `go slow' mode in Adugodi plant too since February 12. Wage negotiations are on at the Adugodi plant, that employs about 4,500 workers. It manufactures common rail injection system, fuel injection pump, power tools and elements for auto industry. Vaishali Jajoo, an analyst attached to Mumbai-based broking from Angel Securities told FE that she did not expect the lock out to continue for a longer time. "The company may incur losses of Rs 1-Rs 1.5 crore per day if they continue with the lock out," she warned. Moreover the company may not have sufficient inventory as they have already resorted to production cuts last year due to recession. The Naganathapura plant was set up in 1989 and since then it has witnessed four strikes, but however this is the first time the company has decided to go in for a lock-out. Industry watchers feel that the lock-out may lead to governmental intervention as Bosch is one of the oldest companies in Bangalore. It was was earlier called Mico Bosch. Already the matter has been escalated to the labour commissioner's office. Bosch Ltd has five auto component manufacturing units in India. Other than the two in Bangalore, it has one each in Goa, Jaipur and Nagpur. The company's roll call includes more than 10,000 employees. The Naganathapura plant was prey to employee agitation for the past one month.

Full Story: Bosch shuts down Bangalore unit; loses Maruti order - Financial Express

Full Story: Imports to hurt auto parts cos - Economic Times

According to data from Grant Thornton, the accounting and consulting firm, there were 196 outbound M&A deals in 2008 with a total value of $13.19 billion which dropped to 82 deals at a value of $1.38 billion in 2009 due to the global economic slowdown.

“Valuations are marginally better than last year. Most importantly, confidence has returned to companies in India. While growth is still not back in Europe and US, downtrend has been arrested. We could see outbound M&A deals touch close to $10 billion in 2010,” said Harish H V, partner, national management, Grant Thornton. Areas that could see potential M&A deals are auto components, telecom, general manufacturing, hospitality and media.

Analysts say that availability of finance is one of the primary reasons why companies have started scouting the market for buyouts in other countries. Grant Thornton said that there were 206 private equity deals in 2009 with a total announced value of $3.44 billion, a fall of 68 per cent from 2008 when as many as 312 deals worth $10.59 billion were announced. The global slowdown, corporate scandals and high valuation expectations by promoter companies were said to be the major contributors for the decline. However, the start of 2010 is already showing a growth trend through PE as well as qualified institutional placement (QIP).

Full Story: Outbound M&A could see 7-fold growth in 2010 - Business Standard

The decision to acquire 100 per cent stake in the Dutch firm was taken by the company's Board of Directors on February 20, Banco Products said in a filing to the Bombay Stock Exchange (BSE).

The board has decided to acquire Nederlandse Radiateuren Fabroiek and its subsidiaries, engaged in the business of manufacturing and distribution of heat transfer products, by purchasing 100 per cent of its equity from shareholders at an aggregate consideration of 17.70 million euros, it said.

The acquisition is subject to the approval of the competent authorities as may be required, Banco said.

Full Story: Banco Products to acquire Dutch firm for 17 mn euros - Business Standard