There are immense opportunities for exports with most multinationals in the auto ancillary industry concentrated on the original equipment market in Europe and America, and not being aggressive in south-east Asia and Middle East, where the replacement market is much stronger, the company said. With the technical knowhow and support of its collaborator, the company's products will be internationally competitive, both in quality and price.

The company plans to arm the board with powers to buy back shares up to 20 per cent of its paid-up equity capital in one or more tranches, by investing funds up to Rs 35 crore. The company can utilise its free reserves, share premium account or the proceeds of any issue made by the company specifically floated for the purpose of buying backsecurities.

Goetze India also plans to hive off its leather garments and edible oils businesses to separate joint venture companies. The company has hived off its piston manufacturing facility to a separate joint venture with Escorts Mahle Ltd.

The company believes that a buy back is necessary so that its paid-up equity capital reflects the capitalisation more appropriately to the business activity of the company. The present base of paid-up equity capital of Rs 25.29 crore is disproportionate to its core business of piston rings, the company believes.

Although the proposed amendments regarding buy-back are yet to be enacted, it is felt that in due course of time such buy-back will become permissible. The company is therefore seeking share-holders approval for the proposals.

The company has sought permission from its share-holders to invest up to Rs 5 crore in the overseas corporate body (OCB) as an initial investment.

Moreover, the company is negotiating for private placement of secured redeemablenon-convertible debentures (NCDs) with various financial institutions, banks and mutual funds for its long term capital requirements. The NCDs in one or more tranches may aggregate Rs 25 crore. Each debenture will have a face value of Rs 100 each and carry an interest of up to 15 per cent per annum. The debentures would be redeemable at par within a maximum period of seven years from the date of allotment in such installments as may be decided by the board.