Rockman Industries, an auto component arm of $5 billion Hero Group, on Monday announced phased acquisition of majority stake in Moldex Composites which produces carbon composites used primarily for aircraft manufacturing, motorsports and now increasingly in high-end hybrid and electric cars.
The present valuation of Moldex is close to Rs 100 crore.
The Hero Group company said that the investment will be part of Rs 500 crore corpus which they have kept aside for investment in emerging technologies, especially in carbon composite segment in the next couple of years.
“First aerospace, then motorsports and now automobile sectors are witnessing a disruptive shift towards carbon composites. The acquisition of a majority stake in Moldex composites is focused on being at the forefront of this emerging new technology” said Ujjwal Munjal, executive director, Rockman Industries.
Rockman Industries aims to reach a turnover of Rs 5,000 crore by the year 2021. It earned Rs 2,230 crore in revenues last fiscal.
The company officials said that they are looking to expand Moldex’s presence international markets. Though Rockman is actively looking to invest in manufacturing facilities in Europe or the US, there are are no plans to start a greenfield facility there.
On India expansion, Munjal said that the market here is all set to change tremendously in the next 5-7 years with the introduction of better technologies in light of strict regulations and customer demand. “We want to be already there in the market when the change is happening,” he added.
According to industry experts, technological disruption taking place in the motorsports, aerospace and automobile sectors is being driven by electronics and light weight carbon composites, which are also tougher than various other materials, are playing a vital role.
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