Lava Cast, an integrated automated foundry and fully-machinedcasting company, is set to merge with its parent company Setco Automotive. Completion of this imminent merger is expected to take place on the back of Setco grouppurchasing all the stake owned by Lingotes Especiales S.A. (technology & JV partner) in Lava cast.

The merger would facilitate an increase in business opportunities for Setco Automotive throughOEMs, further enabling the purchase of all the supplies under one vendor code. This will also resultin an increase of orders from OEM's MHCV and farm-tractor industries. Additionally, the mergerwould improve operational efficiency as it would result into efficient buying, economies of scale,reduction in overheads and administrative efficiencies, thereby estimating savings around Rs 5 crore per annum.