Jupiter Wagons buy CEEBCO through resolution
City-based Jupiter Wagons acquired Madhya Pradesh-based CEBBCO through resolution process at a cost of Rs 100-crore, a top company official said Thursday. Director of Jupiter Wagons, Vivek Lohia said the company had bought the majority stake in CEBBCO which had gone to the NCLT for financial losses.
"The company had been going through financial losses for some time for which it had gone to the NCLT. We have bought the stake from the banks through the resolution", Lohia told reporters here. CEBBCO, a listed entity, is a supplier to OEMs like Volvo Eicher, Tata Motors, Ashok Leyland and Mahindra.
Lohia said, Jupiter Group would be foraying into the road space through this acquisition. The company has been toying with the idea of supplying brake systems to the Indian Railways for which it has entered into an agreement with Czech firm Dako.
Jupiter Wagons, which has a manufacturing facility at West Bengal, has a capacity to manufacture 3000 wagons per annum and has a turnover of Rs 550 crore. A new plant would be set at Bandel at an expenditure of Rs 100 crore to be spend over two to three years, he said.
"Next fiscal, we are expecting a turnover of Rs 1,000 crore", Lohia said..
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