Indian auto components manufacturer Shriram Pistons & Rings Ltd (SPRL) has announced the acquisition of TGPEL Precision Engineering Ltd for an enterprise value of Rs 220 crore ($2.59 billion). This strategic move is aimed at consolidating SPRL's position in the high-precision injection moulded components market and diversifying its product portfolio beyond internal combustion engine (ICE) powertrains.

TGPEL, formerly known as Timex Group Precision Engineering Ltd, is a renowned player in the manufacturing of precision moulds and injection moulded components. The company caters to a wide range of industries, including automotive, electrical, consumer goods, and medical sectors both domestically and internationally.

The acquisition, which is subject to regulatory approvals, is expected to be completed by the end of December 2024. Post-acquisition, TGPEL will operate as a wholly-owned subsidiary of SPRL.

Krishnakumar Srinivasan, Managing Director and CEO of SPRL, expressed optimism about the acquisition, stating, "With this strategic investment, SPRL aims to consolidate its product portfolio beyond the current pistons, rings, engine valves, Electric powertrain and precision plastic injection moulded parts. With its state-of-the-art mould development facility and set up for manufacturing of high precision injection moulded parts, TGPEL will be able to service the domestic and global customers requiring precision moulded parts for automotive & other industrial applications."

TGPEL's two state-of-the-art manufacturing facilities in Delhi-NCR India, coupled with its strong financial performance, are expected to contribute significantly to SPRL's overall growth and profitability. The company's focus on precision engineering and its ability to deliver high-quality products aligns well with SPRL's long-term vision of becoming a leading player in the automotive components industry.

By expanding its product range to include high-precision injection moulded components, SPRL can cater to a wider customer base and reduce its reliance on ICE powertrain components. This diversification of revenue streams allows the company to tap into the growing demand for electric vehicle components and other industrial applications.

Furthermore, TGPEL's expertise in mould making and injection moulding will enable SPRL to optimize its production processes and improve product quality. This enhanced manufacturing capability will drive operational efficiency and customer satisfaction.

By leveraging TGPEL's strong market position and customer relationships, SPRL can accelerate its growth and drive revenue and profitability. This strategic acquisition positions SPRL to capitalize on emerging opportunities and deliver sustainable value to its shareholders.

This acquisition marks a significant milestone for SPRL as it continues to invest in strategic initiatives to strengthen its position in the evolving automotive landscape. By combining the strengths of both companies, SPRL is well-positioned to capitalize on emerging opportunities and deliver sustainable growth for its shareholders.