Pawan Ruia’s Group is in talks to buy Pune based auto part manufacturer, Autoline Industries, sources with direct knowledge said. The deal may be valuing the company at around Rs 250 crores.
Autoline clocked a revenue of Rs 660 crores in FY11, the company’s market cap is around Rs 160 crores. About 85 percent of the company’s revenues come from their largest customer Tata Motors for which Autoline manufactures body products for commercial vehicles.
Autoline also owns a 100 acre land at Chakan in Maharashtra which has been up for sale since a long time. It is still not clear whether the land will be a part of the deal with Ruia Group.
Ruia Group, owning Falcon, Jessop, Dunlop, has been aggressively buying auto component manufacturers overseas. The Group has acquired six companies in the space since 2008.
Both Ruia Group and Autoline declined to comment on the deal.