Ruia Group acquires UK’s Schlegel Automotive

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The Ruia group has fully acquired UK-based auto component maker Schlegel Automotive, formerly Metzeler Automotive Profile Systems UK, chairman PK Ruia has announced. Ruia-owned Global Finvest, a group of two companies, has acquired Schlegel Automotive, which has 30 million pound asset value, according to Ruia.

Ruia declined to disclose the acquisition price, but said that $12 million of the acquisition price has been granted as a loan by the State Bank of India . He said an “aggressive growth campaign” has been started at Schlegel UK with an investment of $6-7 million to accelerate the expansion of the facility. Schlegel caters to companies within the UK and across Europe along with a customer base in South Africa .

Schlegel UK produces car-sealing systems like windscreen, sunroof and boot seals and caters to brands like BMW, Jaguar, Land Rover, Aston Martin, Toyota , Renault and Ford. Originally established in Leeds in 1952, Schlegel UK is currently based in Coalville, Leicestershire, and occupies 21% of the UK sealing market. It also has proprietary rights to two industry patents—the seal close on flange (SCOFS) and TPE veneer.

Ruia said he has already initiated plans to set up Schlegel India with a mother factory that would do the product mixing supported by a number of finishing facilities which will add the finishing touches to the product before it is supplied. Ruia quoted $15 million as an investment fund for Schlegel India .

According to Schlegel UK chief executive officer (global operations) David Boynton, the equipment required for Schlegel India has been bought off two American companies, which have closed down, and are being shipped to India.

Ruia said he foresees an enormous growth potential for Schlegel India given that the automobile industry is booming in spite of the rocketing fuel prices. Boynton said that in addition to having consumers in the Indian market, Schlegel India would have the advantage of having overseas clients that Schlegel UK caters to, as the company is looking forward to extending its customer base to South America .