Schaeffler India’s board approves to Rs 142 crore acquisition of Koovers

The acquisition of KRSV Innovative Auto Solutions Pvt Ltd, also known as Koovers, for approximately Rs 142 crore, was approved by the board of directors of Schaeffler India, the company announced.

Koovers is a B2B (business to business) organization with headquarters in Bengaluru that provides spare parts solutions to Indian aftermarket workshops.

Furthermore, the transaction is expected to be completed in the third quarter of the current financial year. "This acquisition will be fully funded by own cash generation," Schaeffler India said in an exchange filing.

"This acquisition presents an ideal synergy for Schaeffler’s future aftersales activities in India. It will be a key enabler for the aftermarket ecosystem, including distribution partners and help to play an important role in the fast growing and evolving aftermarket digital landscape," the company said in a statement on August 28.

At its Savli (Vadodara) site in Gujarat, the German provider of industrial and automotive components announced the opening of a new production unit in June.

According to the company, the new unit would expand the present plant's manufacturing capabilities by over 10,000 square meters and meet the rising demand in the wind, heavy industry, and railway sectors.

According to the company, the increase in capacity will allow the factory to produce spherical rollers and bearings as well as increase its capacity for heat treatment.

The company produces high-precision rolling and plain bearing products in addition to systems and components for drive train and chassis applications.

Source: Media Reports