Schaeffler India has received an approval for the sale of chain drive business undertaking of the company as a going concern on a slump sale basis to Catensys India (CIPL) for a lumpsum cash consideration of approximately Rs 27.4 crore. The Business Transfer Agreement (BTA) is expected to be executed on or before June 30, 2022. The final consideration is subject to the adjustments as on the date of sale as per the terms of Business Transfer Agreement to be executed.
The company has evaluated and decided to focus on the business areas having future growth potential and to take strategic options accordingly. In view of the not promising outlook of Chain Drive business, the company has decided the strategic option of divestment of this business.
Schaeffler India has its presence in automotive and across all core industrial segments.
