Sandhar Ascast Pvt Ltd announces strategic acquisition of Sundaram-Clayton Ltd's High Pressure and Low Pressure Aluminium Die Casting Business at its Hosur Plant.

Sandhar Technologies Limited, a leading name in the automotive components industry, has taken a significant step forward in its growth journey by executing a Business Transfer Agreement on March 26, 2025. Through this agreement, Sandhar Ascast Private Limited, its wholly-owned subsidiary, has successfully acquired the high pressure and low pressure Aluminium die casting business of Sundaram-Clayton Limited (SCL) (at its Hosur Plant), a prominent player in the sector.

This acquisition represents a pivotal expansion of Sandhar Ascast's operations, positioning it to leverage substantial growth opportunities in the upcoming Financial years.

The acquisition is being made via all-cash deal valued at INR 163 Crores, subject to adjustments as per the terms outlined in the Business Transfer Agreement at the time of deal closure.

The acquisition of SCL's Aluminium die casting business at its Hosur Plant underscores Sandhar's commitment to advancing in allied automotive sectors and reinforcing its global leadership. This strategic move enables Sandhar to scale the segment into a standalone vertical, creating synergies between both companies by combining SCL's legacy with Sandhar's manufacturing excellence. The acquisition will drive growth, expand the customer base, and diversify the product portfolio.

As a longstanding leader in the High Pressure Die Casting (HPDC) sector, Sandhar is now strategically broadening its reach. While the company has deep expertise in HPDC, this acquisition marks its entry into the Low Pressure Die Casting (LPDC) market, a new segment that will further diversify its operations and position it to quickly emerge as a key player in LPDC.

Additionally, the acquisition enhances Sandhar's capabilities in the HPDC market by enabling the use of higher tonnage machines (above 800T). It also expands the product portfolio to include essential components such as cylinder heads, manifolds, and housings, vital in both automotive and industrial applications.

This acquisition goes beyond diversifying offerings; it lays the foundation for Sandhar to lead in both HPDC and LPDC markets. It drives innovation, growth, and market expansion, capitalizing on the increasing demand for die casting technologies. Ultimately, this strategic move strengthens Sandhar's position in the automotive and industrial sectors, ensuring long-term sustainability and continued market leadership.

Key Benefits of the Acquisition:

- Innovation and R&D Enhancement;
- Expanded Market Reach;
- Strengthened Technical Expertise;
- Increased Production Capacity;
- Broadened Product Portfolio;

Mr. Yashpal Jain, Chief Financial Officer and Company Secretary of Sandhar Technologies Limited, added: We are excited to welcome the Sundaram-Clayton's team to Sandhar. This acquisition strengthens our position as an integrated solutions provider in the automotive sector, driving innovation and sustainable growth. By acquiring SCL's Aluminium die casting business, we expand our product portfolio and manufacturing capabilities, reinforcing our commitment to long-term value creation for all stakeholders.

Mr. Ajay Kumar Raghav, Chief Operating Officer (Castings, Machining and Tooling Business) also holding the position of Whole Time Director in Sandhar Ascast Private Limited.

With our established leadership in the High Pressure Die Casting (HPDC) sector, we have consistently delivered innovative, high-quality solutions to our customers. The acquisition of Sundaram-Clayton Limited's Low Pressure Die Casting (LPDC) business significantly broadens our product portfolio, enabling us to tap into the growing demand for LPDC components. This move not only enhances our manufacturing capabilities but also positions Sandhar as a strong player in both HPDC and LPDC markets. We are confident that this acquisition will accelerate our growth trajectory, create new market opportunities, and solidify our leadership in the die casting business, driving long-term value for our stakeholders.

Shares of Sandhar Technologies Limited was last trading in BSE at Rs. 384.95 as compared to the previous close of Rs. 380.40. The total number of shares traded during the day was 5927 in over 594 trades.

The stock hit an intraday high of Rs. 388.40 and intraday low of 375.70. The net turnover during the day was Rs. 2267170.00.

Source : Equity Bulls

Keywords

SandharTechnologies INE278H01035 StrategicAcquisition SundaramClayton HighPressure LowPressure AluminiumDieCastingBusiness