SPR Auto Explores Acquisitions in Thermal Management, Mechatronics

SPR Auto Technologies is exploring acquisitions and partnerships in thermal management and mechatronics as it seeks to expand into new technology-driven automotive businesses, according to a senior company official.

New Delhi-based SPR Auto Technologies is known for manufacturing pistons, piston rings and engine valves. It has also expanded into electric components, precision plastics, vehicle interiors and lighting.

The company is evaluating both joint ventures and outright acquisitions, with customer requirements and opportunities to replace imported products shaping its investment strategy.

“Thermal management is one of them,” Managing Director and Chief Executive Officer Krishnakumar Srinivasan told Autocar Professional when asked about areas the company was considering for acquisitions.

“And then mechatronics is another. So these are areas where we think that there is a huge requirement.”

SPR Auto is already working on potential transactions, Srinivasan said, without identifying the targets.

“There are multiple in the offing, one can say,” he said. “We are already working on a couple of them.”

The company sees technology as a key criterion for any new business or acquisition, Srinivasan said.

“Technology has to be there. We have to have a differentiator,” he said.

SPR Auto is particularly examining thermal management as vehicles become more technologically complex and generate greater amounts of heat, Srinivasan said. The wider use of panoramic sunroofs has increased heat transfer into vehicle cabins, while electric motors and controllers also require more effective cooling systems.

“The kind of motors now with the 3-in-1 and the 4-in-1 that we are making. The motors also generate a lot of heat,” he said. “Controllers are generating a lot of heat.”

However, Srinivasan said the company had not yet made a decision to enter the thermal management business.

“We have not said that we are going into thermal management. That's an opportunity. Those are the areas that we are looking at,” he said.

The company is also looking at opportunities in mechatronics, where Srinivasan said a significant amount of products and technology are currently imported.

“Yeah, because a lot of that gets imported right now,” he said. SPR Auto is open to investing in the localisation of technology with suitable partners, he added.

The company has diversified from its traditional business of pistons, rings and engine valves into electric components, precision plastics, vehicle interiors and lighting. Srinivasan said future investments would continue to focus on technology-led businesses.

SPR Auto also has room to finance acquisitions through its balance sheet, he said. “We think that there is a huge room for us to leverage our balance sheet and acquire. So that's exactly what we are looking at.”

The company is evaluating investments in existing operations, new technologies and acquisitions as part of its future growth plans, Srinivasan said.

The company supplies automotive components to vehicle manufacturers in India and overseas. Its portfolio spans conventional and electric powertrain systems, helping diversify its business beyond its traditional engine-component operations.