Pricol to acquire injection moulding business of Sundaram Auto Components

Pricol Limited has proposed acquisition of Sundaram Auto Components Ltd (SACL)’s injection moulding business through Pricol Precision Products Private Limited (a wholly owned subsidiary of Pricol Limited) for ₹215.2 crore.

According to a press release from Pricol, it will see a consolidated topline addition of nearly ₹730 crore combined with SACL’s healthy financial parameters. The debt-free acquisition is being made through an all cash deal and is subject to adjustments, if any, as defined in the agreement at the time of closing the deal.

SACL is a recognised player in the automotive component industry. The acquisition presents Pricol with an opportunity to scale the injection moulding business into an independent business vertical. It also fortifies the opportunities to expand the customer base and product offerings through effectively integrating the synergies of Pricol and SACL, the press release said.

Managing Director of Pricol, Vikram Mohan, said, “With this acquisition, our focus will remain on harnessing the combined potential of Pricol and SACL, to become an integrated solution player, driving innovation, and delivering sustainable growth.”

K. Gopala Desikan, Group CFO of TVS Motor Company, said, “As market dynamics evolve, and we allocate capital more efficiently in accordance with our strategic plans, we are delighted that Pricol, our trusted long-term supplier partner, is taking over the business.”