Lava Cast to merge with Setco Auto

Chennai: Integrated foundry and machined casting company Lava Cast is set to merge with its parent company Setco Automotive. Completion of the merger is expected to take place on the back of Setco group purchasing all the stake owned by Lingotes Especiales SA (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 and will also result in an increase of orders from OEM’s MHCV and farm-tractor industries,” the company said in a statement.Additionally, the merger would improve operational efficiency resulting in savings of around Rs 5 crore per annum. “This merger would help in achieve our target of reaching Rs 1000 crore revenue by FY21 seamlessly. An enhanced and integrated R&D program will further lead to efficient engineering. We foresee huge opportunity in the casting business which is majorly consumed by industries like construction, mining, earth-moving equipment, aerospace and defence. Additionally, we have forayed into the farm sector for the supply of clutches as well, also one of the biggest consumers of casting,” said Harish Sheth, CMD, Setco Automotive.