"Pitti Engineering Acquires Bagadia Chaitra Indus for ₹125 Crore"

Pitti Engineering Limited (PEL) has entered into an agreement to acquire Bagadia Chaitra Industries for an enterprise value of ₹125 crore. As part of the deal, PEL will inject up to ₹40 crore as funding into BCIPL upon the closing date to settle the existing debt within BCIPL.

The completion of the proposed acquisition is contingent upon the fulfillment of mutually agreed-upon conditions precedent, the company stated.

BCIPL specializes in the manufacturing of electrical laminations and aluminum die-cast rotors for AC/DC motors, alternators, pumps, home appliances, electric vehicles, and various other industries, primarily serving the southern Indian market. Headquartered in Tumkur district, Karnataka, BCIPL boasts an installed capacity of 18,000 tonnes per annum.

By integrating BCIPL into its operations, PEL aims to expand its footprint in South India and augment its overall asset base. The acquisition will facilitate entry into new end-use sectors and unlock opportunities with additional customers. Over time, synergies in sales and marketing are anticipated to enable cross-selling of PEL's existing product portfolio to the newly acquired customer base, thereby enhancing market penetration.

Akshay S Pitti, Vice-Chairman and Managing Director of Pitti Engineering, emphasized the company's commitment to continuously enhancing production capacity at strategic locations and delivering value to customers. He underscored the significance of the BCIPL acquisition, stating that it aligns with PEL's strategic objectives, fortifies operational capabilities, and broadens the customer base.

HBL