03/06/2019 Varroc in talks with Sintex to buy automotive moulding unit - The Economic Times

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Varroc in talks with Sintex to buy automotive moulding unit

BY KETAN THAKKAR & ASHUTOSH R SHYAM, ET BUREAU | MAY 16, 2019, 06.41 AM Post a Comment
IST

MUMBAI: Aurangabad-based Varroc Engineering is in advanced talks with Sintex Plastic

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Technology to acquire the latter’s domestic automotive custom moulding business,
according to several people familiar with the development. Varroc Engin…

Sintex Plastic, which makes plastic products for automotive and household items, is Sintex

looking to sell its domestic automotive custom moulding business as part of a plan to pare
Big Change:
its debt and focus on its core business. The company has also put its overseas The end of Five-Year Plans: All you need to know
automotive custom moulding business on the block, the persons cited earlier told ET,
requesting not to be named.

The company had exploratory talks with several Indian auto ancillary companies before going ahead with Varroc Engineering, they said,
adding that if a deal is struck, it may fetch Sintex Plastic anywhere between Rs 350 crore and Rs 500 crore.

ET’s email query to a spokesperson of Sintex Plastic remained unanswered till as of press time.

Tarang Jain, managing director of Varroc Engineering, said the company is always open to acquisition opportunities, but there is nothing
on the table right now. “At any given point in time, we are on the lookout for both organic and inorganic opportunities, which can help us
grow. But there is nothing to be announced at this point in time,” Jain told ET.

According to the people cited earlier, the company may be able at generate an additional Rs 1,500–2,000 crore by selling Sintex NP, its

https://economictimes.indiatimes.com/industry/indl-goods/svs/engineering/varroc-in-talks-with-sintex-to-buy-automotive-moulding-unit/printarticle/69350687.cms 1/2
03/06/2019 Varroc in talks with Sintex to buy automotive moulding unit - The Economic Times

France-headquartered step-down subsidiary which is also on the block. Sintex Plastic had a debt of Rs 3,606 crore on its books at the
end of September 2018, according to BSE data.

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