utomotive components supplier Mahindra CIE Automotive Ltd has acquired Aurangabad Electricals Ltd (AEL), an aluminium die casting firm, for ₹830 crore, Mahindra CIE said in an exchange filing on Tuesday.
Founded in 1985, Aurangabad Electricals Ltd is a leading manufacturer of automotive aluminium die casting products based in Aurangabad, India. The company, which has five manufacturing facilities including those at Aurangabad, Pune and Pantnagar, is promoted by the Bagla Group and led by Rishi Bagla. It has over 3,300 employees, sales of Rs 850 crore.
Mahindra says AEL is a key supplier to a number of domestic and global two-wheeler and passenger car OEMs and Tier 1 companies. It manufactures a variety of body, brake and engine parts through high-pressure die casting as well as gravity die casting processes. The company also has capabilities for machining, heat treatment, powder coating, assembly and leak testing, along with a modern tool room.
Aluminium die casting is a process used to make smooth, defined metal parts by forcing them into a mold. The acquisition will help Mahindra CIE foray into the aluminium die casting space, as well as strengthening its presence in the two-wheeler segment. The acquisition is expected to be completed by 10 April.
Commenting on the acquisition, Rishi Bagla, Chairman & MD, AEL said, “We are convinced that the partnership with MCIE and CIE will give the company a great boost and allow AEL to benefit from global best practices in aluminum die casting. With the proceeds of the transaction, the Bagla group will further develop its industrial activities and businesses.