Coimbatore-based auto component manufacturer Pricol Ltd proposes to hive off the instrument cluster business of its plant located near Pune to a wholly owned subsidiary to be formed for the purpose. The move is to draw an MNC partner that can bring in the latest technology.

The company manufactures instrument clusters at other locations too and the plant near Pune also makes other products but it is only the instrument cluster business of the Pune unit that is sought to be hived off, according to a company source who did not want to be identified.

Board okays

In a notification to the NSE, Pricol Ltd said that its board of directors on April 29 had approved, subject to the nod of the shareholders, transfer of the business, assets and liabilities related to instrument cluster business of Plant V located at Pirangut village in Mulshi Taluk, Pune on slump sale basis to the wholly owned subsidiary company to be incorporated for this purpose.

Pricol stated that the move would facilitate finding for the new company a multinational joint venture partner who could bring “latest global technology, add value to the existing and new customers, add new products to that company and also assist in international sourcing of material at competitive rates both for new company and Pricol Ltd”.

Specific vendors

Company sources told Business Line that the plant near Pune is into manufacture of auto components, including instrument clusters.

The joint venture partner is expected to help Pricol Ltd as well. It is learnt that Pricol serves specific vendors from its plant near Pune.

Asked about the value of the instrument cluster business of the facility and its share in the overall instrument cluster business of the company and whether the new unit's products would be sold under a different brand name or under Pricol's brand name, the sources said they did not have ready information.

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