March 18: Mahindra CIE Automotive Ltd has acquired Aurangabad Electricals Ltd for Rs 830 crore. With this, the company has entered the aluminium die-casting industry. According to a regulatory filing, the acquisition will also enhance the company’s operations in the two-wheeler market. The acquisition will conclude by April 10.
Using Aluminium die-casting one can develop smooth, defined metal parts by forcing molten metal under high pressure into a mould.
Aurangabad Electricals owns five manufacturing plants established throughout Aurangabad, Pune and Pantnagar in Maharashtra. The company founded in 1985 develops a range of body, brake and engine parts and deliveries it to local and international two-wheeler and passenger vehicle companies and Tier-I auto component makers.
Revenue of Rs 565 was recorded by Aurangabad Electricals in fiscal 2015-16. In fiscal 2015-16, 2016-I7 and 2017-18 it reported revenue of Rs 569 crore and Rs 651 respectively. In fiscal 2018 the company reported a profit of Rs 34.4 crore.
In 2016 Mahindra CIE acquired Bill Forge, an automotive forging company for Rs 332 crore in a cash and stock deal. The major acquisition aimed at the expansion of the business thereby growing the revenue and profit in the Asian Market.
The Indian auto component industry is set to evolve, as leading companies are joining hands with midscale auto component makers. The latest move is to enter the fast-growing global market.
Blackstone Group LLP, International private equity company acquired Comstar at a valuation of around Rs 1000 crore in 2018. The Indian company PE fund Kedaara Capital in April 2018 acquired Sunbeam Auto which manufactures aluminium die casting parts. The transaction for the same was Rs 650 crore.
CIE Automotive SA, based in Spain, is a leading company which supplies components and sub-assemblies to automobile and Tier-I auto part makers in India, Europe and Mexico. The company is listed in the stock exchanges in Madrid and Bilbao.
In September 2013, Indian automaker Mahindra & Mahindra Ltd (M&M) partnered with CIE by forming a global auto components supply network. Retaining a 20% direct ownership in the new entity, the company acquired a 13.5% stake in the Spanish auto-components dealer.