JBM Group, the $1.5bn (Rs 10,656 crore) conglomerate with business interest in auto systems & assemblies today announced that it has acquired major shareholding in Germany based Linde-Wiemann (L+W), a leading manufacturer of complex structural components & assemblies to automotive OEM's worldwide. The acquisition brings to the foray a plethora of synergies for JBM Group in the form of new products, global customers, new German technologies that will not only help in expanding the global footprint of the homegrown conglomerate but will also aid in adding strategic value to its Indian operations, thereby increasing the Group's long-term competitiveness.
This is said to be the biggest transaction in the history of JBM Group that could leapfrog its turnover to $2.2 billion (Rs 15,625 crore). The acquisition was done through one of its flagship companies - Neel Metal Products. Nishant Arya, executive director, JBM Group takes over additional charge as Chairman, Linde-Wiemann.
Linde-Wiemann, headquartered in Dillenburg, Germany, specialises in proprietary technologies in areas such as hot forming, tubular assemblies and usage of alternate materials such as aluminium resulting in lighweighting in auto systems. The company has a strong base of 17 manufacturing plants across 8 countries including Germany, US, China, Spain, Turkey, Czech Republic, Hungary and South Africa with an employee strength over 2300 plus. L+W brings in an experience of over 70 years serving global auto OEMs such as BMW, Volkswagen, Audi, Skoda, Porsche, Daimler, Ford, PSA and many more. JBM will also have access to L+W's strengths in domains such as electric vehicle components and systems and battery structure and systems.
L+W currently has machines with pressing capacities up to 3000 tonnes. The company also brings in complex progressive dies and transfer presses along with hydraulic press lines being used for forming. The core competence of its in-house tool shop includes extensive knowledge in the field of ultra-high-strength steels and the integration of complex feeding units. L+W's current product portfolio includes critical auto systems such as cross car beams, bumpers, rocker panels, tubular assemblies and many more.
Speaking on the acquisition, Nishant Arya, executive director, JBM Group said, "This business activity will further consolidate our global footprint. Both entities together will bring forward an impeccable combination of frugal engineering and world class technology. We are looking forward to leveraging L+W's experience in Europe coupled with our expertise in the auto component domain. JBM and L+W will together focus on developing new products that contribute towards improving the safety and performance of vehicles through light-weighting, thereby increasing the product quality and minimising the time to market for OEMs, making it an integrated one-stop solution".
Ulrich schoof chief executive officer, Linde-Wiemann, on the partnership said, "JBM is a highly complementary partner for us with respect to customers and technologies as part of the global automotive market. The use of joint potentials is an essential motivation for the new partnership. Through the new business model, Linde-Wiemann will be able to unlock substantial growth by the adaption of product competencies in the area of chassis and suspension. Furthermore, Linde-Wiemann will extend its holistic system understanding in the field of e-mobility through the exchange with JBM's electrical bus division."
Ravi Sardana, EVP, ICICI securities, the financial advisor to JBM Group, said, “The Investment brings together two leading players with strong technology and product portfolio, with a complementary footprint and matching ambitions for growth .”
JBM manufactures key auto systems and high-level and safety critical assemblies for almost all auto OEMs present in the country today. It has an end to end product portfolio ranging from passenger cars, 2 wheelers, 3 wheelers to commercial vehicles, farm and construction equipment. Most of its innovative products are safety critical items such as chassis and suspension systems like axles, twist beams, lower control arms, subframes, exhaust systems, air tanks, fuel tanks, complete cowl assemblies, pedal boxes; aesthetical parts like skin panels (doors, roof, rear panel, front panel, bumpers); BIW parts & assemblies (floor, upper body parts like pillar, roof header, cross car beam, cross truck beam, oil pan assembly) and many more.
Indian investments in Germany have remarkably increased over the last few years. Indian corporate entities have invested over EUR 6.5 billion (Rs 52,384 crore) in Germany, especially in sectors of IT, automotive, pharma and biotech. Today, there are more than 200 Indian companies operating in Germany. Germany is the largest national economy in Europe and the fourth-largest by nominal GDP in the world. It is also the third largest exporter in the world and its exports account for more than one-third of national output.