Hyderabad: Hyderabad-based MTAR Technologies said its Board has approved the acquisition of shares of Gee Pee Aerospace and Defence (GPAD) for Rs 8.82 crore.
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The management is currently in discussion with the shareholders of Hyderabad-based GPAD on terms and conditions. This acquisition is expected to provide 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.
Further, the public procurement policy mandates procurement of up to 20% of requirements of Government departments through MSMEs, which is expected to augment its customer base. It will also enable MTAR to address more orders and expand its product portfolio.
“The acquisition of Gee Pee Aerospace will strengthen our capacities in bottleneck areas, which is expected to fuel our revenue growth in defense and allied sectors,” said Parvat Srinivas Reddy, Managing Director, MTAR Technologies.
MTAR has seven manufacturing units including an export-oriented unit in Telangana. It caters to civil nuclear power, space and defence and clean energy sectors.
