Shriram Pistons & Rings Limited (SPRL), a recognized player in India’s auto component manufacturing sector, has announced its acquisition of 100% shareholding in TGPEL Precision Engineering Limited (formerly Timex Group Precision Engineering Limited) through its wholly owned subsidiary, SPR Engenious Limited (SEL).
This move aims to strengthen SPRL’s position in the manufacturing of high-precision injection-molded components, as part of its long-term strategy to diversify its product portfolio beyond internal combustion engine (ICE) powertrain components.
TGPEL specializes in precision mould making and injection-molded parts for the automotive, electrical, consumer goods, and medical industries. The enterprise value for the deal is Rs. 2,200 million on a debt-free, cash-free basis, subject to adjustments as per the Share Purchase Agreement. The transaction is expected to be completed by the end of December 2024.
Established in 2008, TGPEL operates two manufacturing facilities in Noida, Uttar Pradesh, and has consistently grown its presence in various industries. The company is equipped with design and development capabilities for high-precision moulds, in-house tool manufacturing, and the production of injection-molded components, primarily supplying to OEMs and automotive companies.
Commenting on the acquisition, Krishnakumar Srinivasan, MD & CEO of SPRL, stated, “With this strategic investment, SPRL aims to expand its product portfolio beyond pistons, rings, engine valves, and precision plastic injection-molded parts. TGPEL’s expertise in manufacturing high-precision moulded components will support both domestic and global customers, enhancing SPRL’s presence in the high-precision injection-moulding sector.
The integration of SPRL’s manufacturing and engineering capabilities with TGPEL’s technology-driven operations will help achieve synergies and foster growth in the Indian automotive market.”
SPRL expects TGPEL’s solid financial performance to add value to its consolidated financials, contributing to long-term growth and stakeholder value.