Coimbatore — Pricol Limited, a leading player in the automotive industry, has taken a bold stride forward with its acquisition of Sundaram Auto Components Ltd. (SACL)’s Injection Moulding division. This strategic move, executed through its subsidiary Pricol Precision Products Private Limited, positions Pricol for transformative growth and diversification in the competitive automotive sector.
The acquisition, valued at ₹215.3 crore in an all-cash, debt-free deal, is expected to add an impressive ₹730 crore to Pricol’s consolidated topline. The transaction, subject to final adjustments as per the agreement, underscores Pricol’s commitment to scaling allied business verticals while fortifying its leadership in automotive solutions.
A Legacy of Excellence
SACL, a part of the prestigious TVS Motor Company since its inception in 1992, has built a stellar reputation in the Indian automotive components market. Specializing in cutting-edge polymer solutions and advanced injection moulding, SACL operates six state-of-the-art manufacturing facilities across India. The company’s robust operational framework, sustainable practices, and a loyal customer base make it a prized asset for Pricol.
With this acquisition, Pricol plans to establish the injection moulding division as an independent business vertical, harnessing SACL’s existing strengths to expand its product portfolio and customer reach.
Leadership Perspectives
Speaking on this landmark development, Pricol Limited’s Managing Director, Vikram Mohan, expressed optimism:
“We are thrilled to welcome SACL’s talented team into the Pricol family. This acquisition is a vital step toward our goal of becoming an integrated solution provider, leveraging synergies to drive innovation and sustainable growth. SACL’s values align seamlessly with ours, enabling us to meet evolving customer demands and elevate industry standards.”
From TVS Motor Company, Group CFO K. Gopala Desikan commented:
“SACL has been a cornerstone of TVS’s operations for decades. As we adapt to shifting market dynamics, we are confident that Pricol, a trusted partner, will carry forward SACL’s legacy with the same dedication and excellence.”
A Clear Roadmap for Growth
This acquisition aligns with Pricol’s broader vision of sustainable and transformative growth in the automotive sector. Group Director of Strategy at Pricol, Mr. Siddharth Manoharan, highlighted the strategic implications:
“Our focus remains on delivering value-driven solutions to our stakeholders while redefining industry benchmarks. This acquisition is a testament to our long-term vision of leadership in the automotive industry.”
By integrating SACL’s expertise into its operations, Pricol is poised to unlock new avenues of innovation and market expansion, ensuring its continued dominance in a rapidly evolving sector.
