New Delhi, Nov 28 (PTI) Murugappa Group firm Tube Investments of India Ltd on Thursday said it will acquire a 67 per cent equity stake in the Indian arm of South Korea’s KC Altech Co Ltd for ₹62 crore.
The company has executed a definitive agreement for subscription of a 67 per cent equity stake in Kcaltech System India Pvt Ltd (KCAL India), a subsidiary of KC Altech Co Ltd, the Tube Investments of India (TII) said in a statement.
“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,” it added.
The proposed investment will support KCAL India’s expansion plans, including increasing its manufacturing capabilities, the company added.
The acquisition will be carried out “by way of subscription to fresh equity shares for a consideration of about ₹62 crore”, TII said in a regulatory filing.
The acquisition is expected to be completed on or before January 31, 2025, subject to satisfactory completion of the conditions in the agreement.
“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,” TII Managing Director Mukesh Ahuja said.
Chennai-based KCAL India is 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.
“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,” KCAL Korea President Andrew Choi said.
TII said the proposed acquisition aligns with its 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,” the statement said.
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