Autoline to buy majority stake in Italian Co

Mumbai: Pune-based Autoline, metal sheet component makers for automobile manufacturers, is in the process of acquiring a majority stake in Italian automotive design companies SZ Design and Zagato SRL.

Autoline, which acquired a 49 per cent stake, has entered into an agreement with Icon Development, majority shareholder of SZ Design and Zagato, to raise its shareholding in the companies to 60 per cent.

The cost of acquisition is €9 million (Rs 60.89 crore) of which €3 million has been paid and the rest will be paid in two years.

The acquisition has been done through Cyprus-based Koderat Investments, a wholly-owned subsidiary of Autoline.

“With Zagato joining our group, we now cover the entire product development lifecycle, with volume manufacturing and advanced engineering now combined with the most exclusive Italian design,” said Mr Gopal Patwardhan, Executive Chairman of Autoline.

Autoline, whose clients include Tata Motors, Mahindra, Bajaj and Fiat, had posted Rs 380 crore revenue and Rs 32 crore profit for the last fiscal. The company, which is into design, engineering and manufacturing, is focused on producing complete sheet metal welded assemblies and mechanisms.

Zagato offers highly flexible styling, modelling and prototype construction facilities to the automotive brands such as Alfa Romeo, Aston Martin, Bugatti, Bentley, Ferrari - Maserati, Lamborghini, Jaguar and Rolls Royce.

The company offers high-end customising and styling for limited editions of cars for automobile manufacturers as well as individuals.

“We will become majority stakeholder by acquiring 11 per cent more in a month’s time,” Mr N. Radhakrishnan, Joint Managing Director, Autoline, said.

“We aim to move backend operations of the company to India because of the cost competitiveness it offers. We have started recruiting people for design and styling,” he said.

Zagato, with the annual revenue of € 10 million, has a manpower of 60 people.

“We have been working with Zagato for the past six months and we have made joint presentations to companies such as Rolls Royce and Fiat,” said Mr Radhakrishnan.