Automobile component manufacturer Gabriel India, the flagship company of the Anand Group, announced a strategic restructuring programme aimed at consolidating its business operations to enhance growth and competitiveness.
This initiative will be executed through a composite scheme of arrangement involving Gabriel India, Asia Investments Private Limited (AIPL), and Anchemco India (Anchemco). The objective is to position Gabriel India as the primary driver of growth for the group’s automotive businesses.
The composite scheme involves four entities: the merger of Anchemco into AIPL, and the demerger of AIPL’s business operations, which include Anchemco and investments in joint ventures — Dana Anand, Henkel Anand, and Anand CY Myutech Automotive (ACYM) — into Gabriel. Following this, Gabriel will issue shares to AIPL’s shareholders at a ratio of 1,158 equity shares of Rs 1 each for every 1,000 equity shares of Rs 10 each held in AIPL.
Following this announcement, Gabriel India’s stock surged by 19.99% to Rs 862.75 on the BSE on Tuesday. Gabriel India is a market leader in ride control products, including suspension parts and shock absorbers.
Anjali Singh, chairperson of Gabriel India, said the scheme aligns with the group’s strategy to realign its corporate structure, which will enhance its competitive position. “Gabriel India will serve as the primary vehicle for growth within the Anand Group, providing a platform to unlock value for all shareholders,” she said. “At the group level, we have set a revenue goal of Rs 50,000 crore by 2030, and we anticipate Gabriel India leading the charge,” Singh said.
According to Singh, the scheme is expected to accelerate profitable growth with improved margins, thereby creating significant shareholder value through earnings per share (EPS) accretion and higher returns on equity. This transformation is anticipated to change Gabriel from a mono-product suspension company into a diversified, technology-driven mobility solutions provider, reducing dependence on a single product line by expanding into new segments, geographies, aftermarket products, and railway product offerings.
Gabriel’s current revenues, including the sunroof JV, stand at Rs 4,000 crore, while the turnover of the companies being merged is also around Rs 4,000 crore, resulting in a combined turnover of Rs 8,000 crore.
The scheme will result in the transfer of AIPL’s automotive business, which includes Anchemco’s operations and investments in Dana Anand India, Henkel Anand India, and ACYM joint ventures, into Gabriel. This consolidation will unify AIPL’s demerged business operations under Gabriel.
The transaction is expected to be finalised within 10-to-12 months, pending regulatory approvals. After the restructuring is complete, AIPL and other promoters will hold 63.5% of Gabriel India, while the public will hold 36.5%.