03 January, 2008 : The fast growing auto industry in India has encouraged subsidiary industries to grow beyond expectations. This growth also means new challenges for industries involved in auto parts.

The industries involved in production of auto parts have been pulling up their socks to meet new challenges, both in terms of technology and volumes. In the process, a number of firms have gone for mergers and acquisitions. Now, another major acquisition is on the cards, this time involving two giants. News is that Continental India, which is a subsidiary of Continental in Germany, is eyeing a major expansion in India and is in negotiations with Bosch.

Continental in Germany is one of the largest automobile suppliers with a turnover of $35 billion. The Indian leg of the company was earlier focused on mechanical parts and with the current acquisitions the company will have electronic components on its sales lines soon.

Currently, Continental India has an annual revenue running to Rs 220 Crore. The company is coming up with a new electronic plant in Bangalore. The new acquisition is expected to increase by over 60 percent with the new acquisition.