Indian entrepreneurs partner for 100% buyout of Timex Group

In what is seen as the coming together of like-minded serial entrepreneurs from India to forge a partnership of the future, Mr. Sanjay Labroo – Promoter & MD & CEO, Asahi India Glass Ltd. (AIS), Mr. Kabir Bhandari – Promoter and Owner & CEO, Padmini VNA Mechatronics, Mr. Rahul Mookerjee – Ex-MD of Deutsche Bank and current Managing Director, YoNao Capital & Founder, Ashoka University and Mr. Kapil Kapoor, Ex Global COO, Timex Global & chairman Timex India, and current Chairman & Non-Executive Director, Info Edge India Limited announced today that they are coming together for a 100% buyout of Timex Group Precision Engineering Limited (TGPEL).

TGPEL is the Indian subsidiary of Timex Nederland B.V, part of the Timex Group B.V, one of the world’s leading watchmakers. TGPEL was initially started by Timex for captive production of precision engineered parts to be used in watches. Today, TGPEL has diversified and operates across the entire value chain providing end-to-end solutions from mould conceptualization and design to producing the final plastic injection moulded components and product assembly parts used in leading automobile, electrical equipment, construction and consumer goods sectors.

The new investors bring unique and complementary skills. AIS & Padmini have domain expertise in the engineering industries for a number of years and supply to customers all across the globe in the automotive value chain. The investment and the subsequent changes planned in the ownership structure also brings a sense of continuity to TGPEL in the form of Mr. Kapil Kapoor who earlier was the Global COO of the Timex Group, apart from being Chairman of its India operations, and who was instrumental in setting up of TGPEL in India. Mr. Rahul Mookerjee brings to TGPEL his wealth of global M&A, financial and management experience.

Speaking on the occasion, Mr. Sanjay Labroo, MD & CEO, AIS said, “This is a strategic and long-term investment for AIS, which will not only help AIS in securing supply chain integrity through backward integration, but also diversifies AIS’s operations, further complementing and consolidating AIS’ position as a value-added and integrated supplier. Tier 2 upgradation is widely regarded as the key for future growth and AIS has been focussing on upgradation and streamlining its key tier 2 suppliers. This investment is a step in that direction. Besides, our partnership with likeminded investors like Padmini, Rahul Mookerjee and Kapil Kapoor, brings long-term stability and continuity to TGPEL”.

Mr. Kapil Kapoor said, “Timex has built a reputation as one of the foremost watch companies in the world, offering world-class quality and innovation for decades. Its unique expertise in precision engineering and assembly line processes has been honed for over 25 years to establish TGPEL as one of the top precision engineering companies in India. I look forward to working with my fellow investors in steering TGPEL towards a new era of growth”.

Mr. Kabir Bhandari of Padmini VNA Mechatronics adds, “TGPEL offers unique advantages of precision engineering and has the capabilities of further diversifying its offering into various other industries as well as value addition in its products. I see this as a strategic investment that will help both companies to grow, with each leveraging its unique strengths”.

Speaking about the investment, Mr. Rahul Mookerjee said, “This is truly a unique combination of investors, with each of us thinking in the long term, and having invested as value-driven shareholders. We will work together to ensure that the highest code of Corporate Governance is followed, conforming to global standards, which I look forward to contributing to”.

Commenting on the sale of TGPEL, Mr. John Walker, Senior Vice President, Global Finance at Timex Group, said, “Timex Group is sharpening focus on its core business, which is designing, manufacturing and marketing innovative timepieces around the world. After careful consideration, Timex Group has decided to transition ownership of this valuable non-core asset to a new investor group. We believe this decision is mutually beneficial to both TGPEL and Timex Group. We are confident the new owners will take this business forward in a positive way”.