The company intends to leverage SACL's strengths, combined with its own, to scale the injection moulding business into an independent vertical.Pricol Limited is acquiring Sundaram Auto Components Limited's (SACL) injection moulding business for INR 215.3 crore. This all-cash deal, facilitated through Pricol's subsidiary Pricol Precision Products Private Limited, is expected to add approximately INR 730 crore to Pricol's topline. The acquisition aims to bolster Pricol's position in the automotive sector and expand its presence in allied business verticals. SACL, a part of TVS Motor Company, operates six manufacturing facilities across India.
Pricol emphasised the strategic importance of this acquisition in strengthening its automotive industry leadership. The company intends to leverage SACL's strengths, combined with its own, to scale the injection moulding business into an independent vertical. This acquisition also offers opportunities for customer base expansion and diversified product offerings. The transaction is expected to be value accretive to Pricol, given SACL’s healthy financial parameters. The deal is subject to adjustments as defined in the agreement.
SACL, established in 1992, is recognised for its expertise in polymer solutions and injection moulding capabilities. The company boasts a strong customer base and a well-established manufacturing ecosystem. Its six facilities across India highlight operational excellence and sustainable practices. This acquisition represents a key moment in Pricol’s growth trajectory.
Vikram Mohan, Managing Director of Pricol Limited, 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 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. 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.
