Considerable enhancement in Product Portfolio & Market Reach: Nief Plastic manufactures a wide range of exterior and interior plastic component systems and thermosets. These products are widely used not only in the Electrical, Automotive and Aerospace sectors, but also in Household appliances, the building industry, sports / leisure as well as the finished products market.
The possession of diversified technologies and presence in developed markets would provide Sintex access to higher value added offerings.
Access to high profile clients: Sintex, with the acquisition of Nief Plastic, would gain access to new and credible customers such as Peugeot, Renault, Faurecia, and General Motors and Visteon in the automotive sector, Schneider, Sagem, Siemens, Legrand, Thyssenkrupp, Areva and Alstom in the electrical segment and Snecma, Dassault Aviation and Thales in the aeronautics space. This is expected to help empanel it as a reputed international manufacturer and supplier across these markets.
Well developed manufacturing capabilities: The acquisition would enable Sintex to gain access to manufacturing assets at key locations across Europe and Africa. Nief Plastic has seven factories in France, two in Eastern Europe and one each in Tunisia and Morocco.
Their facilities are well developed to cater to a range of operations. In order to meet its customer's demands in innovative sectors, Nief Plastic has integrated new technologies with the help of its R&D team and created partnerships with companies to master other allied technologies.
Most of Nief Plastic' customers employ a 'Just in Time' strategy to their inventories. To be competitive and to be able to respond to this dynamic environment, the Group's manufacturing facilities are strategically located near its main customers. It has also responded to its customers move towards offshoring, by setting up plants in Eastern Europe and Africa.
Synergies: Nief Plastic' critical strengths lie in its product excellence, innovation and superior customer service. Since 1930, the company has evolved from an electrical equipment manufacturer to its present position as a leading supplier of plastic injection moldings and thermosets, which have a wide range of applications over a range of sectors.
Post acquisition, Sintex would be able to leverage Nief's technologies and product portfolio to supply to its customers in India the enhanced product offering and better quality at a much lower manufacturing cost.
Sintex' focus in the Plastic business is on Automotive / Electrical Plastic Composites and Prefabricated structures. This acquisition would add value to the Company's product mix and provide impetus to its existing business.
The deal was referred by BNP Paribas who lead run successfully assisting Sintex throughout including negotiation, due diligence and structuring.
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