Tube Investments of India Ltd to acquire a controlling stake in Kcaltech System India Pvt Ltd

Tube Investments of India Limited ("TII"), a leading player in the engineering and manufacturing sector, has announced the execution of definitive agreement for subscription of 67% equity stake in Kcaltech System India Private Limited ("KCAL India"), a subsidiary of KC Altech Co. Ltd. based in South Korea ("KCAL Korea"). This strategic acquisition will enable TII to strengthen its position in the growing automotive sector, particularly in the domain of aluminium tubes and parts used in Heating, Ventilation, and Air Conditioning (HVAC) systems for automobiles. The proposed investment will support KCAL India's expansion plans, including increasing its manufacturing capabilities.

The proposed acquisition aligns with TII's long-term growth strategy, as it continues to diversify into adjacent business segments that complement its core offerings. With the rising demand for automobiles in India, fuelled by increasing population, disposable income, and government initiatives, TII is targeting the aluminium tubes and parts segment as a key growth area.

KCAL India, based in Chennai, has established itself as a prominent manufacturer of aluminium tubes and parts for HVAC applications in the automobile industry. The company also trades in aluminium forged parts, such as pistons, shoes, and scrolls.

Commenting on the acquisition, Mr. Mukesh Ahuja, Managing Director of TII, stated, "Through this acquisition and the planned expansion of KCAL India, we are entering the growing automobile HVAC ecosystem. This move will enable us to tap into the expanding market for aluminium components used in automobile HVAC systems, aligning our capabilities with the increasing demand for these solutions in India."

Commenting on the acquisition, Mr. Andrew Choi, President, KCAL Korea said, "Our collaboration with TII will provide new opportunities to KCAL India and foster mutual growth. KCAL India would immensely benefit from the industry expertise and customer relationships of TII in the automobile segment. With our experience and TII's backing, together we aim to capture the growing demand for indigenously made aluminium tubes".

Shares of Tube Investments of India Limited was last trading in BSE at Rs. 3434.90 as compared to the previous close of Rs. 3399.50. The total number of shares traded during the day was 7937 in over 1562 trades.

The stock hit an intraday high of Rs. 3520.75 and intraday low of 3400.40. The net turnover during the day was Rs. 27550359.00.

Source : Equity Bulls

Keywords

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