Fersa acquires majority stake in Delux Bearings in India
The Spanish multinational strengthens its global strategy by consolidating its position in India and takes a further step towards market leadership in powertrain components and intelligent mobility solutions while diversifying its product range to reach an estimated turnover of more than 200 million Euros by 2023.
Fersa Group becomes the major investor in Delux Bearings, while the Indian company, dedicated to the manufacture of bearings and electromechanical actuators for all light, heavy commercial and passenger vehicles, maintains its independence under the management of the Rathod family, founders of the company. Rohan Rathod, Managing director and promoter, will continue to spearhead operations in India and will lead the integration of Delux Bearings within the Fersa Group
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Kirti Rathod, second generation Entrpreneur, promoter of delux bearings will continue as chairman of the company. Mr. Rathod expresses, ‘I am extremely proud to be partnering with the Fersa Group. Our business association quickly catalysed into a collaboration because both families have the same approach to people practices; which is of paramount importance for us when it comes to business.
The Spanish group, headquartered in Zaragoza, an expert in smart mobility solutions and powertrain components for automotive, wind energy, and industrial sectors, strengthens its global strategy and consolidates its growth with this operation, which follows the acquisitions of the Austrian company NKE Bearings in 2016 and the American company PFI Bearings in February 2022.
The investment in Delux provides the group with extensive knowledge and experience in bearings and advanced electronic applications for the powertrain of electric and conventional vehicles, complementary to those manufactured by the Spanish multinational, and allows it to diversify its product range and meet market needs and trends that require solutions that improve efficiency and reduce friction in applications. This move enables the Group to provide mobility and anti-friction solutions from E-bikes to Windmills.
This strategic move also allows Fersa Group to expand its production capacity, strengthen its position in the automotive sector as a supplier to the industry’s leading manufacturers, and generate synergies in innovation and R&D, as well as in operations and costs by reinforcing its global supply chain. The outcome of this association is a new factory that will be up and running by April 2023 in Rajkot, India. With the aim of manufacturing wheel end bearings for domestic and export OEs and T1s, this will add considerably to the top and bottom line of the Group within a very short period of time.
Pedro Pablo Andreu, COO of Fersa Group, comments: “With this investment, Fersa Group takes another step forward in its growth strategy, its commitment to sustainable technology and global presence”.
Rohan Rathod, Managing Director of Delux Bearings says: “From our humble roots, we are proud to be part of a larger narrative. For us, Fersa Group is a global and international platform to showcase our local talent and technology. In addition, we have partnered with a great family and company whose values and principles reflect our own – this was the most important thing for the family when seeking an international partner”.
He further adds, “This partnership will help us boost Delux’s growth in both local and international markets while allowing us to reach a wide network of international OEM and aftermarket customers that we could not access before”.
With the latest acquisitions, Fersa Group demonstrates its clear intention to continue growing in the automotive OEM and aftermarket segments and takes another step forward in its mission to be the global leader in powertrain components, especially in heavy-duty vehicles. The group closed 2022 with €165 million in turnover and 57% growth compared to 2021 and expects to exceed €200 million in turnover in 2023.
