Lava Cast is set to merge with its parent company Setco Automotive. Completion of this imminent merger is expected to take place on the back of Setco group purchasing all the stake owned by Lingotes Especiales S.A. (technology & JV partner) in Lava cast.
The merger would facilitate an increase in business opportunities for Setco Automotive through OEMs, further enabling the purchase of all the supplies under one vendor code. This will also result in an increase of orders from OEM’s MHCV and farm-tractor industries. Additionally, the merger would improve operational efficiency as it would result into efficient buying, economies of scale, reduction in overheads and administrative efficiencies, thereby estimating savings around Rs 5 crore per annum.
Setco Automotive is a premier manufacturer of clutch products for the Automotive and hydraulic products for Construction Equipment Industry. In addition Setco also manufactures precision engineering components like complex and deep drawn pressings and forgings and castings that are machined and heat treated.