Date of Post: 15 Feb, 2019
Jupiter Wagons has acquired Madhya Pradesh-based CEBBCO through resolution process at a cost of Rs 100-crore, a top company official said. The company had bought the majority stake in CEBBCO which had gone to the NCLT for financial losses, said Vivek Lohia Director of Jupiter Wagons.
- Lohia said,”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”.
- CEBBCO, a listed entity, is a supplier to OEMs like Volvo Eicher, Tata Motors, Ashok Leyland and Mahindra.
- Jupiter Group would be foraying into the road space through this acquisition, Lohia said.
- 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.
- He said, a new plant would be set at Bandel at an expenditure of Rs 100 crore to be spend over 2-3 years.
- Lohia said,”Next fiscal, we are expecting a turnover of Rs 1,000 crore”.
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