Ingress buys Indian peer to expand
SET-listed Ingress Industrial Thailand Plc (INGRS), an auto components maker, has acquired an Indian counterpart as it looks to penetrate India’s fast-growing automotive market.
Chief executive Abdul Rahim bin Haji Hitam said a joint venture in India, called Ingress Mayur Auto Ventures Private Ltd, has been running profitably for the past three years.
“This acquisition should further enhance Ingress’s net profit,” Mr Abdul Rahim said. “It will also enable the company to expand its business in India’s large and fast-growing automotive market more aggressively.”
Ingress raised 768.7 million baht from floating 578 million IPO shares with a onebaht par value in August. The company’s registered capital rose to 1.44 billion baht after the share issuance.
The major shareholder, Ingress Corporation Berhad, holds a 60% stake in the enterprise, while public investors own the rest.
The Malaysia-based company is the first Asean automotive stock to trade on the Stock Exchange of Thailand.
Mr Abdul Rahim said India is expected to produce 4 million cars this year, up 14.3% from 2016.
While India’s annual car output is already larger than that of all 10 Asean nations combined, the market is set to expand further on an increase in domestic sales and rising demand from neighbouring countries.
Ingress plans to launch more products, in particular a new moulding line, and is seeking new customers among original equipment manufacturers to generate more revenue from India.
Ingress has nine companies with hightech capabilities under its umbrella. It operates in Thailand, Malaysia, Indonesia and India.
In the first six months of 2017, the company reported total revenue of 1.34 billion baht, down slightly from 1.42 billion in the same period last year.
Together with its long-term Japanese and Korean partners, Ingress uses its knowhow and technical expertise to provide high-quality products to various carmakers.
INGRS shares closed yesterday on the SET at 1.40 baht, down one satang, in trade worth 40.1 million baht.