The Sanmar Group Divested Its Iron Foundries In Germany And India
-- The Sanmar Group announced today that it had divested its automotive-centric iron foundries in Germany and India to the Bangalore head-quartered DynamaticÂ® Group. Sanmar's entry into this business a few years ago with the acquisition of the Erla Foundry in Germany, and the subsequent setting up of the unit in India, was a diversification initiative. However, the large investments made subsequently, due to unexpected and attractive opportunities arising in the Group's core areas of Chemicals and Engineering-related Steel castings in Egypt and USA respectively, have led to a re-evaluation of this initiative. The exit now is part of a clear strategy to again concentrate on core activities. The deal releases valuable financial and management resources to Sanmar for deployment elsewhere.
Commenting on the deal, Vijay Sankar, Deputy Chairman of the Group said, "While we regret having to exit from a profitable and growing entity, we are happy that we have found an appropriate home for it. The DynamaticÂ® Group has a strong presence in the automotive sector, with a footprint both in India and Europe, and this business will be a natural fit, enabling it to grow through synergies".