Minda Corporation acquires Panalfa Autoelektrik

PAL manufactures Reduction Gear Starter Motors and Alternators as per latest international technology and quality standards under the Panalfa brand. It caters to the Agriculture Machinery, Stationary Engine, Construction Equipment and Automotive markets globally. Reduction Gear Starter Motors are fast replacing the conventional direct-drive starter motors.

Apr 05, 2016 09:04 IST India Infoline News Service

Minda Corporation announced that it has acquired 100% equity of Panalfa Autoelektrik Limited. PAL, founded in 2007, is a part of the Panalfa Group, a major original equipment manufacturer of automotive systems and components in India.

PAL manufactures Reduction Gear Starter Motors and Alternators as per latest international technology and quality standards under the Panalfa brand. It caters to the Agriculture Machinery, Stationary Engine, Construction Equipment and Automotive markets globally. Reduction Gear Starter Motors are fast replacing the conventional direct-drive starter motors. The optimum weight and dimensions of these Starter Motors help deliver much greater torque and cranking strength. Alternators, with their high quality avalanche diodes, help enhance an automobile’s battery life.

PAL has one manufacturing facility located at Bawal, Haryana. Its products are supplied to OEMs in India and also exported to the U.S. and European markets. Key customers of PAL include Eicher, Escorts, Greaves, HMT, Magneton, New Holland, Polaris, Sonalika and TAFE. The Company had revenues of over Rs. 70 Crores in FY2015 and employs about 400 people. The total cost of acquisition is about Rs. 45.5 Crores.

This transaction will not only add highly complementary products to Minda Corp’s existing product portfolio but also provide access to additional high profile customers, particularly in the commercial vehicle segment. Access to new manufacturing technology from Magneton, used for Starter Motors and Alternators, is another key advantage. Post this acquisition, Minda Corp will have a total of 31 operational facilities including 26 in India. The transaction enables Minda Corp to better service its global OEM and Tier 1 blue chip customer base, and reinforces senior management’s focus on operational excellence. The acquisition has been financed through cash accruals and is subject to customary approvals and conditions.

Commenting on the development, Mr. D.C. Sharma, Group Chief Financial Officer said, "The acquisition of Panalfa Autoelektrik is a highly strategic one. The benefits from the combination of Panalfa’s high growth products such as Reduction Gear Starter Motors & Alternators and Minda Corp’s existing customer base & dealer network are substantial. Minda Corp will be able to provide a better reach to and increase sales of the new products not only in the international markets but also in India, including in the After Market segment through our strong distributor network of more than 400 dealers. Furthermore, we would be able to leverage the new client relationships for Minda Corp’s existing high quality products."

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