The Ruia Group, which is based in Kolkata, has acquired a controlling interest in the Schlegel Automotive Europe Limited, a British company manufacturing auto components. This information was provided by Mr Pawan Kumar Ruia, the chairman of the Ruia Group. But he did not explicitly reveal the sum that is being invested for acquiring the British company and just mentioned that it involves a $12-million bank loan and internal accruals. 

Ruia said on Wednesday, July 9 that this acquisition is being made bearing in mind the rapidly booming automotive market. He said, ‘We are planning to set up a Schlegel manufacturing unit in India. We will invest $15 million for expansion in India.’

The Indian unit that will be formed will be called Schlegel Automotive India Pvt. Ltd and it will be Schlegel Europe’s fully owned subsidiary. Mr David Boynton from Schlegel Europe informed that the plan is to build a mother plant in India. He said that while the excursion work will be executed here, the finishing lines can be done at various units situated near the customer bases. Mr David Boynton further added that they have fixed the location and that the production work will be initiated within a year. He said that an investment of six to seven million dollars will be made in the UK unit too to expand its manufacturing capacity and product line.