Automotive parts supplier Mahindra CIE Automotive Ltd. has agreed to acquire Indian peer Aurangabad Electricals Ltd. for 8.76 billion rupees to help ensure its entry into the automotive aluminum die casting business, according to a March 12 filing to the Bombay Stock Exchange and the National Stock Exchange of India.
Mahindra CIE, which is 11.44% owned by Mahindra & Mahindra Ltd. subsidiary Mahindra Vehicle Manufacturers Ltd., said the transaction includes a future deferred payment estimated at 622 million rupees.
Aurangabad Electricals supplies aluminum die casting and auto electrical products to clients such as Mahindra and Bajaj Auto Ltd. The Maharashtra-based company, which employs more than 3,300 employees, recorded 6.51 billion rupees in revenue in 2018.
Mahindra CIE, owned by Spain-based CIE Automotive SA, said its acquisition of Aurangabad Electricals will also help boost its presence in the motorcycle segment.
The transaction is expected to be completed by April 10.
Mahindra CIE produces iron casting for companies, including Mahindra, Hyundai Motor Co., Ford Motor Co. and Honeywell International Inc. It also produces other automotive solutions, such as forgings, stampings, gears, magnetic products and composites.
As of March 11, US$1 was equivalent to 69.86 Indian rupees.