Shriram Pistons & Rings to buy 75 pc stake in Takahata Precision India for Rs 222 crore

New Delhi [India], February 9 (ANI): Auto component maker Shriram Pistons and Rings (SPRL) on Thursday announced that it would acquire 75 per cent shareholding in Takahata Precision India (TPIL) through its wholly-owned subsidiary -- SPR Engenious (SEL). This will mark SPRL's foray into the manufacturing of precision injection moulded components.
SPRL said it would acquire the firm for a cash consideration of Rs 222 crore.
TPIL is an ultimate subsidiary of Takahata Japan incorporated in 2010 and has its manufacturing facility at Neemrana, Rajasthan, the statement of SPRL shared with exchanges said. TPIL is well-equipped with the design and development of high-technology precision moulds, automated assemblies, internal tool manufacturing and state-of-the-art injection moulding component manufacturing facilities.
Krishnakumar Srinivasan, managing director and CEO, SPRL, said, "with this strategic investment, SPRL aims to diversify its product portfolio beyond the current pistons, rings, engine valves and EV components to precision plastic injection moulded parts."
Japanese firm Takahata Precision is a recision injection moulded parts manufacturing company with a wide range of products in the automotive space. Takahata Japan is also present in industrial products/parts such as office automation equipment, optical equipment, residential facilities, medical equipment and accurate measuring instruments.
Krishnakumar Srinivasan said, "With the operations and technology support of Takahata Japan to TPIL, we will be able to service the domestic and global customers requiring precision moulded parts both for automotive and industrial applications. Takahata brings in their hi-technology expertise to develop complex parts for these applications."
The acquisition is subject to customary approvals and conditions. EY acted as the exclusive financial advisor to SPRL on this transaction, according to the company's statement.
Recently, SPRL also completed the acquisition of EMFI, manufacturers of Electric Vehicle Motors and Controllers based in Coimbatore, Tamil Nadu (India). (ANI)