Pawan Kumar Ruia has said that he is in talks to acquire an automotive component company in Germany and may route the transaction through the listed group firm Falcon Tyres. Falcon Tyres will raise around 800 crore by way of fresh shares via rights issue, equity convertible warrant or other instruments.
“We are pursuing acquisition plans aggressively and are close to the deal, but are yet to finalise the terms of the transaction,” Mr. Ruia said.
The acquisition is partly to consolidate operations in automotive space and aim for new targets after the unsuccessful bidding for Korean SUV maker Ssangyong. The Ruia Group was bidding alongside Indian utility vehicle maker Mahindra & Mahindra.
Mr. Pawan Ruia said that the company also aims to direct more money into the Mysore plant to raise its capacity by 50% to 15 lakh tyres per month besides plans to invest in a new plant in Haridwar with a capacity of 5 lakh tyres per month. The Greenfield facility would mainly look after the tyre needs of Hero Honda.