Greaves Cotton, one of India’s leading diversified engineering companies has reported revenue of Rs 514 crore in Q3 FY2023, up 6 percent YoY. The EBITDA came at Rs 3 crore, profit after tax at Rs 6 crore. The company says transitioning to meet the new battery norms impacted EV production and primary revenues in Q3 FY2023.
The company has also signed a binding term sheet to acquire 100% stake through multiple tranches in Excel Controlinkage (Excel). The deal values Excel Controlinkage at 7.5x of its FY2023 normalised EBITDA for the first tranche subject to a maximum Enterprise Value of Rs 385 crore.
Nagpur-based Controlinkage is said to be one of the largest players in mechanical and electronic motion control systems with an integrated capability to manufacture Push Pull cables, levers and sensors. Its OEM customer segment includes commercial vehicles, construction equipment, agriculture, and marine among others.
Nagesh Basavanhalli, Executive Vice-Chairman, Greaves Cotton said, “Our diversification strategy of transitioning from a metal-based, manufacturing engineering company to an electric, electronic, and mechatronics based clean mobility technology company, continues with the acquisition of Excel. It complements our vision to build new competencies and accelerate the growth of clean-tech, last-mile mobility.”
“By investing in forward-looking technologies, we are unlocking new avenues of growth for Greaves. Our product roadmap with a wide range of new electric two and three-wheelers, and our new e-powertrain offering showcased at the Auto Expo 2023, bears testimony to our purposeful stride towards emerging as India’s most complete last-mile mobility ecosystem player. Our margins have improved, and our cash position continues to be strong. We are optimistic about sustained growth with all the new developments.“
Ashok Mrig, Founding Partner, Excel said, “We have created Excel as a proud engineering and product manufacturing company providing solutions to our OEM and aftermarket customers. We are confident that in partnership with Greaves with its multi-product, multi-location engineering capability is the right partner for Excel to grow its business globally and multiply Excel’s value in interest of all stakeholders.”
Dr. Arup Basu, MD, Greaves Cotton said, “Excel Controlinkage has a complementary product portfolio serving common industry segments. The combined capabilities will expand GCL’s technical competencies and act as a springboard for profitable growth across geographies on a larger base of engineering products and services.”