MTAR Technologies plans to acquire Gee Pee Aerospace & Defence, an MSME, for ₹8.82 crore.
The acquisition is expected to provide a wide array of benefits under MSME category, including the increased potential of entering into offset partnership with global OEMs, as foreign partners get an offset credit of up to 1.5 multiple on Indian content, it said.
Also, the public procurement policy mandates government departments to procure up to 20% of their requirements through MSMEs, something expected to augment the customer base of MTAR with the acquisition.
In addition, the move will enhance the capacity that enables the company to address more orders, thus expanding the product portfolio, MTAR said in a release on Tuesday.
Announcing that its board has approved the acquisition of shares, MTAR said it is currently in discussion with the shareholders of Gee Pee on the terms and conditions.
“The acquisition of Gee Pee will strengthen our capacities in bottleneck areas, which is expected to fuel our revenue growth further specifically in defence and allied sectors,” managing director Parvat Srinivas Reddy said.
MTAR caters to civil nuclear power, space and defence and clean energy sectors and has seven manufacturing units.
