Pricol buys SACL's injection moulding biz for Rs 215.3 cr

COIMBATORE: Pricol Limited marked a pivotal moment in its journey on Monday 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 Rs 730 crore 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 Rs 215.3 cr 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 renowned for its expertise in innovative polymer solutions and cutting-edge injection moulding capabilities. SACL has six manufacturing facilities across India. 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.

Vikram Mohan, MD, Pricol 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. 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 realising our commitment to a sustainable and transformative growth.”

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.”