New Delhi: Auto component-maker JBM Group today said it has acquired a 51 percent stake in UK-based Tesco GO for an undisclosed sum as part of plans to strengthen its business in the country as well as overseas markets.
The billion-dollar group, which acquired the majority stake in Tesco GO through subsidiary JBM Cadmium, said the acquisition will add another USD 20 million to its overall revenues by the end of this fiscal.
"The acquisition will open new avenues for us... We will leverage the engineering and technical expertise of Tesco GO and find ways to strengthen our existing segments or enter into new domains," JBM Group Executive Director Nishant Arya told reporters here.
He said the group has been focusing on heavy trucks, cars and railways. "Using the expertise of Tesco, we will also look at entering aerospace, which they have been good at," Arya said.
JBM is also looking at expanding its base in overseas markets, particularly in emerging markets like China and Mexico. At present, 4 per cent of its revenues come from international markets, which includes countries in Western Europe and North America.
While the group did not provide details on the size of the deal, the company said Tesco GO had a turnover of USD 20 million last year and has been providing engineering services to auto giants like Mercedes Benz/Daimler, Ford, Tata, Fiat, Lamborghini, Bajaj and Piaggio, among others.
Talking about expansion plans, Arya said the group will also look at setting up plants outside the country, while continuing to enhance its existing facilities in India.
"As we expand our base and presence across the globe, there are definitely chances of setting up facilities outside the country in the long run," he said.
He, however, declined to give details on proposed capacity expansion of the company's existing facilities in India.