In a significant move to bolster its auto components business, Pricol Limited has approved the acquisition of the plastic components division of Sundaram Auto Components Limited (SACL), a subsidiary of TVS Motor Company. The acquisition will be executed through Pricol’s wholly-owned subsidiary, Pricol Precision Products Private Limited.
Key Details:
- Transaction Value: ₹215.3 crore, subject to adjustments.
- Revenue Contribution: The acquired division reported a revenue of ₹727.33 crore in FY24.
- Completion Timeline: The transaction is expected to close by January 31, 2025.
The plastic components division of SACL specializes in injection-molded solutions and serves multiple segments, including automotive. This acquisition aligns with Pricol’s strategy to diversify and strengthen its offerings in the auto components sector.
Supporting Initiatives:
In addition to the acquisition, Pricol announced plans to:
- Invest up to ₹120 crore in Pricol Precision Products to support operations and expansion.
- Provide a corporate guarantee of ₹250 crore for loans availed by the subsidiary.
- Acquire a 26% stake in PQSI Digital Private Limited for ₹10 crore to enhance digital transformation capabilities in Industry 4.0 solutions.
This acquisition marks a pivotal step for Pricol in enhancing its product portfolio and operational scale, reflecting the company’s ambition to become a leader in the auto components industry.
