Tube Investments to acquire controlling stake in KCAL India

Tube Investments of India Ltd (TII) has signed a definitive agreement with Kcaltech System India Pvt. Ltd. (KCAL India) for acquisition of 67% stake for a cash consideration of ₹62 crore.

KCAL India is a subsidiary of South Korea based KC Altech Co. Ltd. The transaction is expected to be completed by January 2025

The proposed investment will support KCAL India’s expansion plans, including increasing its manufacturing capabilities. The proposed acquisition aligns with TII’s long-term growth strategy, as it continues to diversify into adjacent business segments that complement its core offerings.

With the rising demand for automobiles in India, fuelled by increasing population, disposable income, and government initiatives, TII is targeting the aluminium tubes and parts segment as a key growth area.

The city-based KCAL India is a prominent manufacturer of aluminium tubes and parts for HVAC applications in the automobile industry. The company also trades in aluminium forged parts, such as pistons, shoes, and scrolls.

“Through this acquisition and the planned expansion of KCAL India, we are entering the growing automobile HVAC ecosystem. This move will enable us to tap into the expanding market for aluminium components used in automobile HVAC systems, aligning our capabilities with the increasing demand for these solutions in India,” said TII Managing Director Mukesh Ahuja.