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Bengaluru, December 02, 2024: Pricol Limited marked a pivotal moment in its journey today with the 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). With this acquisition, Pricol will see a consolidated topline addition of approximately INR 730 crores combined with SACL’s healthy financial parameters that are value accretive to Pricol. The debt-free acquisition is being made through an all cash deal for an amount of INR 215.3 Crs and is subject to adjustments, if any, as defined in the Agreement at the time of closing the deal.
This acquisition underscores Pricol’s commitment towards advancing its growth in allied business verticals thereby cementing its leadership in the automotive sector. SACL, part of the TVS Motor Company, established in 1992, is a well-recognized player in the Automotive Component Industry. Renowned for its expertise in innovative polymer solutions and cutting-edge injection moulding capabilities, SACL’s six state-of-the-art manufacturing facilities across India embody operational excellence and sustainable practices. Over the years, the company has built a strong customer base, supported by robust talent and well-established manufacturing ecosystem.
This acquisition presents Pricol with an opportunity to scale the injection moulding business into an independent business vertical and leverage SACL’s strength combined with Pricol’s capabilities, thereby paving a way for growth in this vertical. It also further fortifies the opportunities to expand the customer base and product offerings through effectively integrating the synergies of Pricol and SACL.
On the occasion of this announcement, the Managing Director of Pricol Limited, Mr. Vikram Mohan, said: “I express immense pride in welcoming the talented team at SACL into the Pricol family. 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. SACL’s expertise and value systems perfectly align with our vision and core values which will enable us to meet the demands of our customers. This acquisition is a significant step towards realizing our commitment to a sustainable and transformative growth.”
Mr K Gopala Desikan, Group CFO of TVS Motor Company said, “SACL has played a vital role in the TVS group for many years, establishing a significant presence in the Indian automotive component industry. 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. We are confident that they will uphold the same values and ethos, ensuring a smooth transition and continued growth.”
“With the acquisition of SACL’s injection moulding business, Pricol makes a strategic move towards solidifying its long term vision of strengthening and expanding its leadership position in the Automotive Industry. Through focussed and well-defined products and solution offerings, we aim to redefine industry standards with clear roadmap for growth whilst creating lasting value for all of our stakeholders”, added Siddharth Manoharan, Group Director of Strategy, Pricol.
