Carburettors Ltd, the Indian promoter of UCAL Fuel Systems Ltd, is buying the entire 26%-equity stake held by co-promoter Mikuni Corporation of Japan. UCAL Fuel is a successor to Carburettors Ltd, which started manufacturing carburetors for automobiles in India in 1958.
UCAL Fuel and Mikuni Corporation have had a long fruitful association that spanned 20 years. Ever since the collaboration in 1987, UCAL Fuel has gone on to manufacture products for several automobile and two-wheeler companies. During this period, UCAL Fuel has absorbed extensive technical knowhow provided by Mikuni Corporation. In addition to products manufactured in collaboration with Mikuni, the research and development (R&D) of UCAL Fuel has independently introduced a number of new products and has expanded its customer base to include GM, International, Ford, Cummins, Siemens, Bosch, Tata Motors to name a few, said a press release in Chennai on Tuesday. However, officials were not available for comment on financial details.
Post divestment, UCAL Fuel and Mikuni Corporation will cooperate in certain limited fields. Both the companies are free to pursue their individual growth strategies in India and across the globe. UCAL Fuel will be forming multiple alliances and partnerships with various companies worldwide for a wide range of products. The objective of the company is to enlarge its product profile and grow in untouched areas.
