Dynamatic Technologies has executed Business Transfer Agreement with Hi-Tech Arai. The company to sell the auto division of the company located at Chennai. In respect of the divestment of the Auto Division, the company will receive Rs 40 crore as consideration for transfer of all the fixed assets relating to the aluminum business of the Auto Division, which is in excess of the book value of underlying assets, while the company has carved out and redeployed some machinery worth Rs 8 crore into its other businesses.
Additionally, the Hi-Tech Arai has agreed to acquire the inventories of the Auto Division on an actual basis at a price that will be determined by the parties upon physical verification.
Dynamatic Technologies is the largest producer of Hydraulic Gear Pumps in Asia and one of the top five worldwide. The company designs and builds highly engineered products for Automotive, Aeronautic, Hydraulic and Security applications.