Dhoot Transmission acquires UK's Parkinson Harness Technology

Aurangabad-based Dhoot Transmission, the second largest wiring harness manufacturer in India in the two-wheeler space, and the fourth overall, has concluded its second acquisition in the UK, taking over, Parkinson Harness Technology, which is a leading manufacturer, supplying to a reputed client-base across commercial vehicles, off-road vehicles, construction vehicles, railways, defence, and utility vehicles.

This is Dhoot’s third strategic acquisition after it bought over Scotland’s TFC Cable Assemblies in June 2017 and also came into a JV into automotive electronics for sensors, controllers and automotive switches with Carling Technologies of the US in October last year.

With it bagging Parkinson Harness Technology, Dhoot Transmission has expanded its portfolio in the lucrative four-wheeler category, especially in the construction, agriculture and off-road vehicle segments, which will significantly add to Dhoot Transmission’s European operations.

Speaking on this acquisition, Rahul Dhoot, managing director, Dhoot Transmission, said, “This transaction is part of our strategy to acquire key clientele in the European geography, while at the same time diversifying our domestic businesses within the four-wheeler category in the agricultural and construction sectors, adding to our leadership position in the two-wheeler space. This acquisition will help us make giant strides in the UK market and at the same time expand the product portfolio in the domestic market. With this acquisition, we are confident of achieving our target of growing from Rs 500 crore in revenue in 2017, to Rs 1,000 crore in 2019.”

David Earnshaw, managing director, Parkinson Harness Technology, commented “We are very happy to pass the business we have built over the last two decades into the hands of Dhoot Transmission Group. We are sure that they will continue to nurture what we have built over so many years and take it to greater heights than it would have been possible for us to achieve in isolation.”

Singhi Advisors, a global investment bank, focused on niche cross-border mergers and acquisitions, acted as exclusive advisors to Dhoot Transmission in the transaction. 

According to Sapna Seth, director, Singhi Advisors, “Dhoot Transmission is working towards a phased expansion of its product portfolio, especially in the four-wheeler segment – both organically and inorganically, and this acquisition is part of the larger strategy, which will be further strengthened with an equity infusion plan of up to US$ 50 million (Rs 324 crore) in the immediate future.”

Dhoot Transmission has grown with a CAGR of 20 percent over the past three years and now holds a 30 percent market share in the two-wheeler wiring harness business, as well as a 25 percent market share in the CV space. It has also geared up to meet the harness requirements of the new ABS norms, getting mandated from April 2018 onwards, requiring the installation of wheel speed sensors in the above 125cc category of two-wheelers, where Dhoot Transmission holds a 40 percent market share.