India based Sujana Universal Industries Ltd acquires EBC Bearings India

Sujana Universal Industries Ltd will acquire EBC Bearings India Ltd, the ball bearing manufacturer. EBC Bearings India Ltd is the subsidiary of European Bearing Corp, which has major Russian operations. The firm constructed a plant in the state of Hyderabad, India, for the making of medium and large sized bearings, but manufacturing is yet to commence at the new plant.

The new facility marked the continued push for growth by the European major in India, as it moves to foment its position in the country. Sujana has already finished undertaking due diligence for the acquisition of EBC Bearings Ltd. Currently, Sujana Universal’s Light Engineering Components segment boasts a capacity of ten million for the manufacture of ball and taper bearings of up to 300 mm.

Sujana Universal Industries Ltd is hopeful the investment will allow it the chance to grow its product offering and range up to 700 mm and will facilitate meeting the demand for large bearings in India. Currently, most of the demand in India will be met through imports from foreign bearings makers. The European Bearing Corp is the CIS bearing firm that owns 40 per cent of the Russian bearing market segment and manufactures over 80 per cent of Russia’s non-commodity and specialty bearings.

The Indian firm, Sujana Universal is involved in the production and marketing of metal products like bearings and domestic electronic gadgets such as ceiling fans. The firm currently owns four operating segments, inclusive of Light Engineering Components Division, Appliances Division, Steel Products Division and the Infrastructure Division. Sujana as well engages in the export of cotton and synthetic yarn, stone products, marine products, light engineering goods and bulk commodities.

Just recently, Sujana launched the multi-million purpose pain relieving product called Hot Patch. Sujana announced a restructuring operation some months ago, meant to involve a series of mergers and acquisitions with firms that have similar lines of businesses. Last year, Sujana acquired 42.77% in Hyderabad-based Futuretech Industries Ltd for Rs.16.45 Crore.

Sujana Universal Industries Limited is an India-based company. It has four divisions: Light Engineering Components (LEC) Division, Appliances Division, Steel Products Division and Infrastructure Division. Light Engineering Components (LEC) Division includes bearings, bearing components and other products. Appliances Division includes fans and fan components and other products.

The Steel Products Division includes casting division, processing division and trading of Steel products while the Infrastructure Division is engaged in construction.

21 Sep 2010.