Key Points
- Pricol will acquire Sundaram Auto Components’ (SACL) injection moulding business for ₹215 crore.
- The deal is an all-cash transaction through Pricol’s subsidiary, Pricol Precision Products.
- The acquisition is expected to increase Pricol’s revenue by ₹730 crore.
- SACL has six manufacturing facilities and reported ₹727 crore in revenue for FY24.
- Pricol will also buy a 26% stake in PQSI Digital Private Ltd for ₹10 crore.
Looma News
Pricol Ltd, based in Coimbatore, is buying the injection moulding business of Sundaram Auto Components Ltd (SACL), which is part of TVS Motor Company. The deal, valued at ₹215 crore, will be an all-cash transaction through a slump sale.
The purchase will be made by Pricol Precision Products Pvt Ltd, a fully owned subsidiary of Pricol. This acquisition is expected to add around ₹730 crore to Pricol’s revenue. Pricol plans to use SACL’s expertise in polymer solutions and injection moulding to grow into a new area of business, expand its product range, and reach more customers. According to Vikram Mohan, Managing Director of Pricol, the integration of both companies will help boost innovation and foster long-term growth.
SACL, which was founded in 1992, runs six manufacturing plants in India and reported ₹727 crore in revenue for the financial year 2024. This deal shows Pricol’s strategy to expand into related sectors and strengthen its position in the automotive parts market. The final details of the deal will be adjusted when it closes, as per the agreement.
Pricol also announced plans to invest up to ₹120 crore in Pricol Precision Products over several stages. The company’s Board has approved a corporate guarantee for any loans Pricol Precision may take, up to ₹250 crore. As part of its expansion, Pricol will also invest ₹10 crore to acquire a 26% stake in PQSI Digital Private Ltd, a provider of Industry 4.0 solutions. PQSI Digital reported ₹50 lakh in revenue for FY24.
