Uravi T & Wedge Lamps expands into defense sector with strategic acquisition

Uravi T & Wedge Lamps Limited (NSE Code: URAVI, BSE Code: 543930), a leader in the manufacture and supply of automotive lamps, has announced a major acquisition that marks its entry into the defense sector. The company has agreed to acquire up to 55% of the shares of SKL (India) Private Limited through a secondary acquisition for a total consideration of up to ₹ 20.1 Crores. This move will occur in multiple tranches, with the initial tranche comprising up to 43.91% of the shares, followed by an additional 6.1% in the subsequent tranche.

This acquisition is a strategic enhancement for Uravi, positioning it to expand its footprint in the defense sector, leveraging SKL India’s established expertise in power systems, associated equipment, and special purpose defense equipment. SKL India, known for its robust design and manufacturing capabilities, was available for acquisition at a reasonable valuation, making this move timely and strategic for Uravi.

Mr. Niraj Gada, Managing Director and CEO of Uravi, expressed his enthusiasm for this strategic venture, stating: “I am thrilled to announce Uravi T and Wedge Lamps Limited’s strategic acquisition of a majority stake in SKL (India) Private Limited. This acquisition marks a significant milestone in our growth journey and aligns perfectly with our long-term vision to enhance our market presence and expand our product offerings. By leveraging SKL India’s expertise and capabilities, we aim to drive greater value for our stakeholders and strengthen our competitive edge in the industry. We are committed to seamless integration and look forward to the synergies this partnership will bring.”

Incorporated in 2004, Uravi T & Wedge Lamps Limited has established itself as the leading manufacturer and supplier of incandescent and wedge-based automotive lamps in India. It holds a significant position in the instrument clusters market and is the second-largest in the automotive signalling and parking lamps segment for OEMs. The company specializes in delivering tailored solutions for both OEM and aftermarket sectors and is actively expanding its global footprint.

Uravi’s acquisition of SKL India is a well-timed strategic move into the defense sector, reflecting a broader trend of diversification by automotive companies into adjacent industries. This acquisition not only diversifies Uravi’s product line but also enhances its technological and manufacturing capabilities, positioning it as a formidable player in both the automotive and defense sectors.