Indian Ruia Group Buys German Auto Seal Supplier

A lot of automakers got interested in Indian parts suppliers, as the Tata Nano project indicated extremely low prices in this sector, which meant cutting costs for car manufacturers. According to India’s Economic Times, international manufacturers interested in the Nano suppliers include Renault-Nissan, Toyota, VW and Honda.

Indian Ruia Group has just acquired 60% controlling stake in Henniges Automotive Grefrath, an important German supplier of sealing systems for premium automakers like Daimler, BMW, Audi and Volkswagen. Ironically, Indians will supply parts for some of the companies interested in a supplier switch, but probably at the same costs.

The Ruia Group which is based in Kolkata also controls Dunlop India and Falcon Tyres. The Indians refused to make public the cost of the takeover, but we do know that the acquisition was made through a special company and renamed Henniges Draftex.

The remaining 40 percent stock will be held by Henniges director Juregen Hein who owns 15 percent and administrator Wolf Von Der Fecht who has 25 percent. The company has about 400 employees and posted a 83.5 million Euro revenue in 2008.

"We aspire to be a global major in the business of manufacturing automotive sealing systems and an important player in the auto-ancillary business," said Ruia group chairman Pawan Ruia. "We continuously look forward to worthwhile acquisition opportunities."