CK Birla Group firm, National Engineering Industries (NEI), said on Tuesday that it is planning its first overseas acquisition in its core business of bearings manufacturing. This will help it expand its international presence.
“We are looking at companies in Europe and the US, which have an annual turnover of Rs 100-500 crore,” Mr Rohit Saboo, President and CEO, NEI said.
NEI, which sells bearings under the NBC brand to a majority of domestic automakers, expects to further penetrate the global markets. The company has announced “phased investment” of Rs 500 crore for expansion over the next five years, part of which will be for its fourth plant.
“This will include at least Rs 150-200 crore for setting up a new facility in Karnataka or Gujarat. The plant will be flexible in terms of capacity. Going forward, we can double our overall capacity in the next five years,” Mr Saboo said. It has also increased its research and development-spend, he said.
NEI's current capacity is to make 80 million bearings annually across its three plants. With a market-share of 24 per cent, it is the second-largest supplier of the component to companies such as Hero MotoCorp, Maruti Suzuki, Tata Motors, Bajaj Auto and Daimler (Germany).