New Delhi: Escorts Limited, one of India's leading engineering conglomerates, today announced the divestment of its OEM & Export business of the Auto Product division to Badve Engineering Ltd., Pune. It was an all-cash deal and was a part of a strategic reorientation of the business to focus on core verticals in the agri-machinery, construction equipment and railway equipment.
The auto products business comprises of products like shock absorbers, telescopic front forks, McPherson struts, steering components and special dampers. The company provides these parts to OEMs and the replacement market in India and overseas and cover motorcycles, scooters, passenger cars, commercial vehicles, and multi-utility vehicles.
The company has its manufacturing plant in Faridabad which is spread across in an area of 225,500 sq.ft., and has the capacity to produce 3.2 million shock absorbers and struts and 0.3 million front forks per annum. The plant features an assembly line, sealing plant, component cleaning, powder coating plant, grinding lines, spot welding, seam welding machine and robo welding systems
Dipankar Ghosh, CEO, Escorts Auto Products & Escorts Railways Products said, "We believe that the transfer of OEM and Export business to Badve Engineering Ltd will help us to focus on our core areas. We are delighted that Badve Engineering Ltd has stepped in to take the business forward."