The Hyderabad bench of the National Company Law Tribunal has given its stamp of approval to the plan submitted by the Synergies Castings Limited vide its order dated August 2 envisaging amalgamation of the Synergies Dooray Automotive Limited (SDAL) with the Synergies Castings Limited (SCL).
The SCL, which has its corporate office here, manufactures aluminium alloy wheels. It specialises in producing extremely high precision, high quality, high-end alloy wheels for leading automobile companies.
The city-based firm has a total wheel casting capacity of 9.60 lakh and chrome plating of 2.40 lakh wheels with certification by several companies including TUV.
The resolution plan addresses interests of all the stakeholders, financial, statutory and operational credit holders as well as ensures the continued smooth operations of the company and employment of nearly 1500. The said order is also consistent with the previous judgments of the BIFR.
The order, enabling the amalgamation of two firms will enable the SCL to grow further and achieve its full potential, a company spokesman said.
The spokesman said Synergies is a globally-approved alloy wheels supplier to several automobile majors like the General Motors, Ford, Chrysler of USA, General Motors of India, Ford-India, Tata Motors, Hyundai, Fiat, Volkswagen and the Mahindra and Mahindra.
The company, he said, had an impeccable record of serving global OEM customers in multiple continents for over a decade. After mooting the proposal to locate car units by Proton and Volkswagen, there is no serious effort to make Visakhapatnam into a manufacturing hub. It is felt that a strong ecosystem with a solid vendor base will make the city into an automobile hub in future due to the location of two ports and the availability of good connectivity.