Business | General
Abraaj Capital takes controlling stake in Pakistan's MS Forgings
Abraaj Capital has acquired a controlling interest in MS Forgings, Pakistan's largest steel forging house, specialising in steel components for the automotive industry domestically and abroad.
- Staff Report
- Published: 00:00 November 27, 2006
Dubai: Abraaj Capital has acquired a controlling interest in MS Forgings, Pakistan's largest steel forging house, specialising in steel components for the automotive industry domestically and abroad.
The acquisition of the 80 per cent stake in MS Forgings marks the first investment by the Abraaj BMA Pakistan Buyout Fund LP, which was announced earlier in the year and had its first closing in June.
Founded in 1974, MS Forgings has evolved into the leading supplier of steel forged components for the Pakistani automotive industry, which has seen tremendous growth over the past five years with the market for locally assembled vehicles growing at over 30 per cent per annum.
Analysts expect current growth levels to continue largely on the back of the macroeconomic growth in the Pakistan economy and the continued proliferation of automobile financing.
By identifying the global outsourcing trend in the automotive parts industry early on, MS Forgings has focused on high quality production in-line and has developed an export capability. Roughly 50 per cent of revenues are from exports to major markets like Europe and the US.
MS Forgings is looking to further leverage this trend and is considering strategic acquisitions within Pakistan and in established markets such as Europe and the US.
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