Shriram Pistons Acquires TGPEL Precision Engineering for Diversification
On December 10, 2024, Shriram Pistons & Rings Limited (SPRL) announced that its subsidiary, SPR Engenious Limited (SEL), will acquire TGPEL Precision Engineering Limited. The INR 2,200 Mn deal is set to close by December 31, 2024, with final adjustments for debt and working capital.
Strategic Objectives Behind the Acquisition
SPRL seeks to diversify beyond internal combustion engine components, leveraging TGPEL’s expertise in precision tooling and injection-molded plastic parts. TGPEL’s capabilities in design, manufacturing, and high-tech molds align with SEL’s growth strategy to reduce sectoral risks.
About TGPEL Precision Engineering
Established in 1992 as a Timex Group company, TGPEL operates two Noida-based facilities, serving automotive and industrial clients with precision-engineered products. Its consistent financial growth, including FY 2023-2024 revenue of INR 1,183 Mn, adds value to SPRL’s portfolio.
SPRL’s Broader Growth Vision
This acquisition complements SPRL’s earlier investments in SPR EMF Innovations (electric vehicle motors) and SPR Takahata Precision (high-tech molds and assemblies). It signals SPRL’s commitment to expanding its product range and enhancing customer offerings in the evolving automotive market.
Future Outlook
Krishnakumar Srinivasan, SPRL’s CEO, emphasized the synergies between SPRL’s engineering strengths and TGPEL’s product capabilities. This strategic move is expected to unlock growth opportunities, strengthen SPRL’s market presence, and deliver long-term value for stakeholders.
