Whats common between Pricol, varroc eng and Motherson???
Pricol divested their foreign subsidiaries which were loss making-
Pricol Espana S.L., Pricol Wiping Systems Czech s.r.o and Pricol Wiping Systems Mexico S.A. de C.V
Varroc Eng divested their foreign subsidiaries – 4 wheeler lighting operations in US and Europe which were loss making
Motherson carved out their india wiring harness business which has 40% ROE leaving behind international business with single digit roe and margins
All three created value by correcting their poor capital allocation in the past
Suprajit is doing exactly opposite- they are buying foreign assets and I am already scared
Having said that there are two fundamental differences according to me between Suprajit’s foreign operations viz a viz others which i will explain in next posts on some other day
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