Nagpur Automotive acquired Neepaz V Forge from AML at Rs. 230 crore

The fastest growing alloy, special and construction steel manufacturing company of India, Adhunik Metaliks Limited has also expanded its foothold in the areas of mining and power through subsidiaries. One such subsidiary of AML was Neepaz V Forge which manufactured various automotive products like steering knuckles and arms, spindles, under brackets and crankshafts. The clientele of Neepaz V Forge included all the major car makers of the country like Tata Motors, John Deere, Ashok Leyland, Renault and Mahindra & Mahindra etc. AML has sold this forging subsidiary to Nagpur Automotive Industreis Pvt. Ltd. The deal which was an attempt to outlay a strategy to divest non-crore assets was finalized for Rs. 230 crore or 44 million USD.

The AML has a strong backup of Clearwater Capital Advisors. The revenue of Neepaz V Forge is Rs. 116 crore with a net-profit of Rs. 4.8 crore and Ebitda of Rs. 20 crore. The product range is very rich and includes cam shafts, crank shafts, connecting rods, axle beams, steering knuckles, axle arms, differential case and covers, pistons, yokes, track lines, stub axles, differential housings, gears etc. This recent deal has increased the Ebtida value of the company by 11.4 times and net-profits by 48 times. The consultants of the deal for Adhunik Metaliks Ltd and Nagpur Automotive were Enam and ICICI Securities respectively.

The history of Neepaz V Forge indicates that it was named as V Cube Forge India Ltd. and was acquired by Adhunik group in September 2007. Adhunik Group is a 1 billion USD company that is based out of Kolkata. Dealing in the mining, power and steel industries, Adhunik Metaliks is listed as a public firm. Adhunik Metaliks Ltd. lost 100% stakes of Adhunik Power Transmission Ltd. to Deepak Cables India Ltd. last year. Adhunik Power Transmission Ltd manufactures fabricated and galvanized items and was formerly named as Unistar Galvanisers & Fabricators Ltd.

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