Amtek Auto to cut jobs, combine operations to cut costs

Amtek Auto has a consolidated debt of around Rs. 14,000 crore, and is looking at monetising its overseas assets to eliminate almost half of the debt over the next 12-18 months.

Amtek Auto is likely to cut its workforce by combining several operations to save costs even as the company is constantly looking to reduce its huge debt burden, reports a financial newspaper.

The company has a total workforce of 16,000 in India, including that of its various subsidiaries.

Amtek Auto has a consolidated debt of around Rs. 14,000 crore, and is looking at monetising its overseas assets to eliminate almost half of the debt over the next 12-18 months.

The company is looking at selling either a minority stake in its overall overseas business or sell off a separate entity entirely, Vice-Chairman & MD John Flintham has been quoted as saying.

Amtek Auto has appointed Morgan Stanley to advise it on debt reduction and identify buyers for its overseas assets.

The company has received a tremendous response for the proposed sale of Tekfor, the German forging company it had acquired in 2013 and is now profit-making.