India’s auto component manufacturer Pricol has acquired a Brazilian auto component firm Melling do Brasil through its wholly-owned Spanish subsidiary Pricol Espana.

The company has informed BSE that its Board of Directors has proposed to acquire 99.99% of stake in the Brazilian firm, PTI reported.

Melling do Brasil provides oil and water pumps, cold start valves and aluminum castings.

The acquisition will be funded through a mix of internal accruals and debt.

Pricol chief strategy officer N Diwakar was quoted by the Economic Times as saying: "All major OEMs (original equipment manufacturers) have moved to global platforms. There is commonality of engine platforms in India, Indonesia, Europe and Brazil."

The acquisition process is expected to be completed by the end of January next year.

Pricol is expecting revenues of $60m (around 375 crore) from the Brazilian market in the next three years, Diwakar added.

The Brazilian auto component manufacturer has reported sales revenue of Rs3011m during the calendar year 2013, the report said.

This new development is expected to help Pricol to make its presence in the auto component industry of Brazil.