Pricol Acquires the Injection Molding Division of Sundaram Auto

Pricol Precision Products Private Limited, a fully owned subsidiary of Pricol Limited, has been suggested by Pricol to acquire the injection molding division of Sundaram AutoComponents Ltd (SACL). Together with SACL's sound financial metrics, which add value to Pricol, this acquisition will result in a total topline addition of almost Rs 730 crore. For a total of Rs 215.3 crore, the debt-free purchase is being completed through an all-cash transaction; any necessary modifications would be made at the time of deal close, as specified in the agreement.

A well-known participant in the automotive component market, SACL is a division of the TVS Motor Company, which was founded in 1992. Renowned for its proficiency in cutting-edge injection molding techniques and creative polymer solutions, the business has amassed a solid clientele, bolstered by a strong workforce and a firmly established industrial ecosystem.

Through this acquisition, Pricol will have the chance to expand its injection molding business into a separate business vertical and take use of SACL's strength and Pricol's skills, opening the door for future expansion in this sector. By skillfully combining the synergies of Pricol and SACL, it also strengthens the prospects for growing the clientele and product line.

Vikram Mohan, Managing Director of Pricol Limited, made the following statement in light of the announcement: "I am extremely proud to welcome the amazing team at SACL into the Pricol family. With this acquisition, we will continue to concentrate on utilizing Pricol and SACL's combined potential to become a comprehensive solution provider that fosters innovation and produces long-term growth. Our vision and fundamental values are ideally aligned with SACL's experience and value systems, which will allow us to satisfy client requests. A major step in achieving our goal of transformative and sustainable growth is this acquisition."

"SACL has been an integral part of the TVS group for many years, establishing a significant presence in the Indian automotive component industry," stated K Gopala Desikan, Group CFO of TVS Motor Company. "We are thrilled that Pricol, our reliable long-term supplier partner, is taking over the business as market conditions change and we more effectively allocate cash in line with our strategic ambitions. We have faith that they will maintain the same principles and culture, guaranteeing a seamless transfer and further expansion."

"Pricol takes a calculated step toward achieving its long-term goal of enhancing and growing its leadership position in the automotive industry with the acquisition of SACL's injection molding business." Siddharth Manoharan, Group Director of Strategy at Pricol, stated, "With targeted and clearly defined products and solution offerings, we aim to redefine industry standards with a clear roadmap for growth while creating lasting value for all of our stakeholders."