Pitti Engineering acquires Bagadia Chaitra Industries to expand South India presence

In a strategic move set to reshape the engineering sector, Pitti Engineering Limited (PEL) has announced its decision to acquire 100% equity share capital of Bagadia Chaitra Industries Private Limited (BCIPL) for an Enterprise Valuation of ₹124.92 crores. This landmark deal, pivotal for PEL’s expansion strategy, marks a significant step towards broadening its manufacturing capabilities and customer base in the highly competitive south Indian market.

BCIPL, known for its prowess in manufacturing electrical laminations and aluminum die cast rotors, serves a diverse range of industries including AC/DC motors, Alternators, Pumps, and Electrical Vehicles. Operating out of Tumkur district in Karnataka, BCIPL boasts an impressive installed capacity of 18,000 Tonnes Per Annum, positioning it as a key player in the region.

The acquisition cost will be fine-tuned based on the Net Debt and Working Capital adjustments on the closing date, with PEL committing up to ₹40 crores to fund BCIPL’s existing debt repayment. The successful closure of this deal hinges on the satisfaction of agreed condition precedents, paving the way for a synergistic integration of both entities.

For Pitti Engineering Limited, this acquisition is more than a mere expansion of production capacity; it represents a foray into new sectors and markets, promising enhanced operational strength and a richer customer portfolio. Vice-Chairman and Managing Director, Mr. Akshay S Pitti, expressed his enthusiasm for the integration, highlighting the strategic significance of BCIPL to PEL’s growth trajectory.

“We are very excited to welcome BCIPL’s leadership team, and their employees to the Pitti group,” stated Mr. Pitti. He further elaborated on the strategic relevance of this acquisition, emphasizing its role in augmenting PEL’s production capacity and enhancing its value proposition to customers.

This acquisition is not just a growth avenue for PEL but also a testament to its inorganic growth strategy, aiming at bolstering its market penetration and operational efficiencies. The move is expected to yield significant sales and marketing synergies, enabling PEL to leverage BCIPL’s established presence in South India and introduce its existing product portfolio to a new customer base.

The engineering sector is witnessing a transformative phase, with companies like Pitti Engineering Limited leading the charge through strategic acquisitions and expansions. The acquisition of Bagadia Chaitra Industries Private Limited is poised to create new opportunities for innovation, customer engagement, and market leadership in the manufacturing domain.