Chennai-based Nelcast Ltd has entered into a Memorandum of Understanding with Pritika Group of Companies, for acquiring 51% stake in their companies.

Pritika Industries Pvt. Ltd engages in producing castings and forgings at its plants in Punjab and Himachal Pradesh. The group produces a range of cast or forged and machined components such as nuts and bolts, flywheel and rear axle housings, brake housings, rotors and discs, steering knuckles and gear shift levers.

The company informed in a statement that Pritika Industries has three subsidiaries — Pritika Auto Cast Pvt. Ltd, Nibber Castings Pvt. Ltd and Pritika Auto Products Pvt. Ltd. The turnover of the group was around Rs 50 crore last year.

According to the experts, the acquisition would give Nelcast a foothold in the North, with facilities from where it could service its regional customers easily.

The consideration of the deal and the means of funding may be revealed over the next few weeks.