Sandhar Technologies expands into LPDC with Rs 163cr acquisition of Sundaram-Clayton’s Hosur aluminium die casting unit

In a strategic move set to redefine its die casting operations, Sandhar Technologies Limited, through its wholly owned subsidiary Sandhar Ascast Private Limited, has signed a definitive agreement to acquire Sundaram-Clayton Limited‘s aluminium die casting business located at Hosur. The all-cash deal, valued at ₹163 crore subject to final adjustments, signals Sandhar’s ambitious entry into the low pressure die casting (LPDC) market, while also strengthening its capabilities in high pressure die casting (HPDC).

The acquisition was formalised via a Business Transfer Agreement on March 26, 2025. This transformative deal underscores Sandhar’s long-term strategy to diversify its automotive components portfolio, expand its manufacturing scale, and enhance its presence across both domestic and global markets. By integrating this new asset into its die casting operations, Sandhar Technologies is positioning itself as a full-spectrum aluminium die casting solutions provider, with an emphasis on both innovation and operational synergy.

Why is Sandhar acquiring Sundaram-Clayton’s Hosur plant?

Sandhar Technologies has built a strong reputation in the high pressure die casting space, particularly in producing complex and lightweight components for original equipment manufacturers (OEMs). However, until now, it lacked exposure to the growing segment of low pressure die casting—a technology critical for producing components like cylinder heads, engine manifolds, and housings that require superior dimensional accuracy and structural integrity.

With this ₹163 crore acquisition of the aluminium die casting business from Sundaram-Clayton Limited, Sandhar enters the LPDC segment while simultaneously boosting its existing HPDC capabilities. Executives said the Hosur plant acquisition not only brings additional manufacturing capacity but also access to higher-tonnage machines above 800T, which are essential for producing larger castings for both automotive and industrial applications.

This strategic acquisition directly aligns with keyphrase-rich goals such as expanding aluminium die casting capabilities, diversifying product portfolio in automotive components, and gaining market share in low pressure die casting.

What’s included in the deal and how does it fit Sandhar’s growth model?

Under the transaction, Sandhar Ascast will take control of Sundaram-Clayton’s high pressure and low pressure aluminium casting business housed at its Hosur facility in Tamil Nadu. The transfer includes all associated plant equipment, infrastructure, and personnel linked to die casting operations, making it a turnkey acquisition. The deal structure also ensures operational continuity and seamless integration with Sandhar’s ongoing projects and customer commitments.

From a strategic standpoint, this acquisition strengthens Sandhar’s backward integration in casting technologies and gives it leverage to offer a wider array of cast components for global OEMs. With LPDC components increasingly used in electric vehicles (EVs), passenger cars, and two-wheelers, the acquisition positions Sandhar to tap into new customer segments and capitalise on future mobility trends.

How does this impact Sandhar’s position in India’s aluminium die casting market?

India‘s aluminium die casting market is projected to grow significantly over the next decade, driven by rising EV adoption, lightweighting trends, and increasing industrial applications. While HPDC has historically dominated volumes, LPDC is gaining prominence for its role in precision-critical engine parts and structural components. Sandhar’s foray into both domains places it among the few Indian companies with such a balanced casting portfolio.

The company stated that this expansion provides not just access to new technologies but also operational synergies through shared supply chains, reduced lead times, and optimised production planning. The move also reflects broader industry trends where component manufacturers are pivoting to integrated casting services to meet evolving OEM demands.

Sandhar Technologies is expected to benefit from expanded aluminium die casting operations, scaling high pressure die casting production, and entering low pressure casting markets, all of which were prominent long-tail keyphrases in the press release and now central to the company’s strategic narrative.

Executive insights: Why this acquisition matters now

Yashpal Jain, Chief Financial Officer and Company Secretary of Sandhar Technologies, described the acquisition as a “key milestone” in Sandhar’s evolution as an integrated solutions provider for the automotive industry. He noted that combining Sundaram-Clayton’s capabilities with Sandhar’s manufacturing expertise would generate long-term value across its supply chain and customer base.

Ajay Kumar Raghav, Chief Operating Officer for Sandhar’s Castings, Machining and Tooling Division and Whole-Time Director at Sandhar Ascast, said the acquisition significantly broadens Sandhar’s product portfolio and positions the company to “quickly capture new market opportunities” in the LPDC space. He also highlighted that the move reflects Sandhar’s vision to grow its die casting business into a self-sustaining vertical capable of serving domestic and global OEMs.

The integration is expected to boost aluminium casting growth, increase LPDC production capacity, and diversify component manufacturing in India, key phrases that speak directly to current investor and industry expectations.

Investor sentiment and stock performance: Is Sandhar a buy, sell, or hold?

Following the announcement of the acquisition, shares of Sandhar Technologies Limited (NSE: SANDHAR | BSE: 541163) saw modest upward movement, reflecting cautious investor optimism. Over the past month, the stock has shown resilience, trading in a narrow band around ₹280–₹295 per share. On the day following the acquisition news, shares closed up by 2.4%, suggesting the market viewed the transaction as value-accretive in the medium to long term.

Market sentiment toward Sandhar Technologies remains neutral to positive, with analysts highlighting its consistent operating margins, diversified customer base, and increasing exposure to high-growth automotive segments such as electric mobility and advanced safety components. The acquisition of a full-scale LPDC unit is viewed as a strategic complement that could drive future earnings.

Buy/Sell/Hold Insight:

Analysts tracking Sandhar recommend a ‘Hold’ rating with a positive bias, noting that while the acquisition adds clear strategic value, its full financial impact may take 12–18 months to materialise. Investors are advised to monitor integration timelines and order inflows from LPDC-based platforms before initiating or increasing positions. Long-term investors with a three- to five-year view may consider accumulating on dips, especially if the company outlines clear synergy benefits and cost rationalisation in the coming quarters.

Brokerage feedback also suggests that Sandhar could be rerated upwards if its LPDC business shows early traction, especially with EV customers or international OEMs.

About Sandhar Technologies Limited

Sandhar Technologies is a leading supplier of automotive components in India, focused primarily on safety and security systems such as locking assemblies, latches, hinges, and vision systems. Over the years, it has diversified into aluminium casting, plastic moulding, and machining solutions. With customers across two-wheelers, passenger vehicles, commercial vehicles, and construction equipment, Sandhar serves major global and domestic OEMs.

Guided by its motto—Growth. Motivation. Better Life.—the company continues to invest in innovation, employee development, and sustainable manufacturing practices. With the Sundaram-Clayton acquisition, Sandhar strengthens its capabilities in aluminium casting for industrial applications and die casting for electric vehicles, two segments poised for double-digit growth in the coming decade.