EuroGroup Laminations (EGLA), an Italian company that makes parts for electric motors, is expanding its business. The company has announced it will buy a 40% stake in India’s Kumar Precision Stampings. This investment of 19.9 million euros will help EGLA enter the Indian market.
Kumar Precision Stampings also makes key parts for electric motors, including stators and rotors. The deal is expected to be finalized by the end of the year, and EGLA will gain control over Kumar through a shareholder agreement.
EGLA announced on Thursday evening that it plans to invest 19.9 million euros to acquire a stake in Kumar, a company that manufactures stators and rotors for electric motors used in various industrial applications. This move will enable the Italian firm to establish a presence in the Indian market.
The transaction, anticipated to close by year-end, will include a shareholder agreement granting EGLA control over Kumar.
Earlier on Thursday, following Italian Prime Minister GiorgiaMeloni’s visit to China, EGLA revealed a partnership with the Chinese automotive component manufacturer Hixih Rubber Industry Group.
During her visit, Meloni emphasized Italy’s need to enhance cooperation with China, the world’s second-largest economy, and achieve a more balanced trade relationship.
The newly announced agreement aims to form a joint venture controlled by EGLA, focusing on stimulating growth in the Chinese market and increasing commercial penetration, especially with electric vehicle manufacturers.
A new research and development center for innovative technologies will be established at Hixih Group’s industrial base in Shandong province, alongside a high-tech industrial plant dedicated to producing motor cores for new energy vehicle manufacturers. EGLA currently operates two production facilities in China, one serving its EV & Automotive business unit and the other its industrial business unit.
