Indianapolis — Imperial Auto Industries Ltd., based in India with a North American auto parts facility in Indianapolis, said May 20 it has acquired a portion of industrial molded hose assets from ContiTech Fluid Mexicana S.A., based in Delicias, Mexico.
Imperial said it plans to move the production equipment to India, where it will increase capacity at its four existing production facilities there, which produce a combined 150,000 hoses per day.
Terms of the transaction were not immediately disclosed, and it was not clear what specific production equipment was purchased by Imperial.
"We intend to be a leader in the off-highway fluid transmission segment with continual large-scale investments targeted at capacity, cleanliness for hydraulic systems, forming technologies, EV (and) new developments," Imperial CEO Tarun Lamba said in a statement. "While many traditional hose and tube makers are reducing capital spending in the industrial fluid transfer segment, we are increasing our capacities and core competencies in the field. This is recognized in the market as Imperial becomes the dominant supplier to multiple North American OEMs."
According to Directorio Automotriz, a Mexican automotive website, Conti's Delicias facility produces air conditioning, heating and cooling hoses and is located in the state of Chihuahua in the north-central portion of the country.
Imperial Auto Industries manufactures automotive components for the first-fit market, namely fuel injection and hydraulic tubes, radiator, heater hoses, power steering assemblies, testing equipments, bellows and other related products made from rubber and nylon.
"Imperial Auto Industries, an India-based leading producer of fluid transmission hoses and tubes for the domestic and global markets, has entered into an agreement to acquire a portion of Continental's industrial molded production assets within their Delicias, Mexico, facility," Imperial said in a May 20 press release. "Not affected are any of Continental's core segments of on-highway molded hoses, which continues as normal."
Imperial said the move emboldens the firm's presence in the industrial hose space, as it relates to construction equipment, agricultural machinery, material handling and other non-highway products.
"The companies are cooperating to ensure a smooth supply transition for those companies who elect to obtain (the same) supplies from Imperial Auto," Imperial said. "Imperial is experienced in managing the production of high mix/standard volume demands of unique PN's as demanded by the off highway/industrial sector. We favor the customized work required to serve this business segment."
Imperial Auto Industries Ltd. is privately held with about $350 million in annual sales, approximately 15 percent of which are exports, in part to the North American market. Warehousing and technical support facilities are in the U.S., Mexico, England and Germany.
Imperial's Indianapolis facility is about 93,000 square feet with $8 million of goods on hand. The company said it plans to build a second facility in the U.S. in South Texas in 2022.