This decision falls in line with the strategic intent and long-term plan of Subros for expanding business in home air conditioning domain
Subros Ltd., an auto component manufacturer, has recently announced that the company has signed a pact with Zamil Air Conditioners India Pvt. Ltd. for acquiring certain assets of Zamil, which are linked to the production of home air conditioning (AC) systems.
Subros confirmed in a regulatory filing that the company, which has been aiming to gain a foothold in the segment of home air conditioning for the past few years, has inked a memorandum of understanding (MoU) with Zamil Air Conditioners.
Subros mentioned that this decision is in line with the strategic intent and long-term plan of the company for expanding its business in home air conditioning domain. The company is also in the process of entering into definitive agreements in this regard.
The company further said that it would be creating a capacity of 5 lakh units per annum with this acquisition, along with expanding its supply of home air conditioning units. This transaction is anticipated to be concluded by April 2019.
Reportedly, in technical alliance with Denso Corporation, Japan, Subros produces thermal products for automotive applications in India. The company purportedly manufactures heat exchangers, condensers, compressors as well as all connecting elements that are need to complete AC loop, along with catering to all segments, including railways, refrigeration transport, trucks, buses and passenger vehicles.
For the record, shares of Subros closed up 4.4 per cent at Rs. 261 apiece. 4,218 shares were traded so far in the counter, in contrast with the daily average volumes of 1,405 shares in the last couple week. The stock had hit a low of Rs 258 and a high of Rs 265.95 so far during the day. On 18 September 2018, the stock reached a 52-week high of Rs. 379.10 whereas on 28 January 2019, the stock hit a 52-week low of Rs 206.45.