Pricol announces acquisition of injection moulding business from Sundaram Auto Components

Pricol Limited, a leader in automotive component industry, has unveiled a strategic acquisition of Sundaram Auto Components Limited (SACL)’s injection moulding business. This strategic business acquisition, conducted through Pricol’s subsidiary Pricol Precision Products Private Limited, reflects the company’s commitment to sustainable growth strategy and operational excellence. The ₹215.3 crore deal is expected to close with adjustments as per the agreement.

This acquisition enhances Pricol’s revenue by an estimated ₹730 crore while integrating SACL’s proven polymer solutions expertise and operational manufacturing excellence. Pricol’s Managing Director, Vikram Mohan, stated that this strategic business acquisition aligns with the company’s vision to deliver transformative innovation and revenue growth opportunities.

Established in 1992, SACL, a TVS Motor Company subsidiary, is recognised for its polymer solutions expertise and cutting-edge injection moulding business. Its six state-of-the-art facilities across India have helped shape the automotive component industry, combining technological advancement with sustainable practices. By acquiring this unit, Pricol positions itself to scale the injection moulding business into an independent vertical.

TVS Motor Company’s Group CFO, K Gopala Desikan, affirmed the decision, noting that SACL has been integral to the automotive component industry within the TVS ecosystem. He expressed confidence that Pricol will uphold its operational excellence and facilitate a smooth transition.

Driving global market leadership

This acquisition is a pivotal step in Pricol’s journey to cement global market leadership. The deal allows Pricol to expand its injection moulding business while delivering innovative solutions to the automotive component industry. With over 2,000 product variants serving two-wheelers, passenger vehicles, and commercial vehicles, Pricol is already a leading global player.

Pricol’s sustainable growth strategy integrates SACL’s polymer solutions expertise to address evolving industry demands. The company also enhances its customer base and product offerings by leveraging complementary synergies from this strategic business acquisition.

Through this acquisition, Pricol strengthens its existing verticals, such as Driver Information and Connected Vehicle Solutions and Actuation, Control, and Fluid Management Systems. This move not only contributes to revenue growth opportunities but also underscores Pricol’s ambitions to redefine standards within the automotive component industry.