Sandhar Technologies Expands Die-Casting Portfolio with Strategic Acquisition!

Sandhar Technologies Ltd, a prominent player in the Indian automotive sector, has made a significant move to enhance its die-casting capabilities through the acquisition of Sundaram-Clayton’s Aluminium Die Casting Business at its Hosur plant. The acquisition, made through Sandhar’s subsidiary Sandhar Ascast, has been structured as a slump sale and is set to bolster Sandhar Technologies’ presence in the competitive die-casting market while improving its manufacturing capabilities.

This acquisition is a key step in Sandhar Technologies’ strategy to consolidate and expand its operations in the automotive components sector. By bringing Sundaram-Clayton’s aluminum die-casting business under its umbrella, Sandhar is enhancing its market reach and solidifying its position as a leader in die-casting solutions. The company aims to leverage the acquired capabilities to meet growing demand across its customer base, with an emphasis on high-performance aluminum die-casting parts used in automotive manufacturing.

The decision to acquire Sundaram-Clayton’s aluminum die-casting operations also reflects Sandhar’s commitment to long-term growth and strengthening its supply chain. This acquisition provides Sandhar with access to advanced manufacturing technologies and production capacity, allowing it to better serve the needs of its clients and stay ahead of market trends.

As part of this strategic expansion, Sandhar Technologies is also consolidating its operations for greater efficiency. The company has decided to transfer two of its zinc die-casting units, HR Unit IV and KA Unit II, to Sandhar Ascast. This move will streamline Sandhar’s casting operations under a single entity, enabling improved coordination and significant economies of scale.

While these two units contributed a small share to Sandhar’s total revenue, the consolidation reflects a focus on enhancing operational efficiency and optimizing resources. This restructuring is expected to boost the overall productivity of the company’s die-casting business, helping it scale up to meet the evolving needs of the automotive industry.

Sandhar Technologies’ total revenue for FY 2023-24 stood at Rs 2,715.67 crore, and the company aims to increase its profitability by reducing operational redundancies and enhancing its capabilities through these strategic moves.

In addition to the acquisition, Sandhar Technologies is planning to divest its entire 50 percent stake in Jinyoung Sandhar Mechatronics Pvt Ltd. The company is currently seeking potential buyers for its stake and expects further updates upon finalizing the deal. This divestment is part of Sandhar’s ongoing efforts to streamline its portfolio, eliminate non-core assets, and focus on its key growth areas.

By divesting its stake in Jinyoung Sandhar Mechatronics, Sandhar Technologies is focusing on improving its core capabilities and strengthening its position in the automotive sector. The company’s leadership believes that this move will allow it to better allocate resources and drive growth in areas with the greatest potential.

The strategic acquisition and divestment plan signal Sandhar Technologies’ broader vision of growth and operational excellence. The company’s focus on strengthening its core business areas, improving efficiency, and expanding its manufacturing capabilities will help it stay competitive in the rapidly evolving automotive industry.

Sandhar’s acquisition of Sundaram-Clayton’s aluminum die-casting business and its consolidation of operations under Sandhar Ascast will position the company to better meet the increasing demand for high-quality automotive components. Furthermore, the divestment of non-core assets such as the stake in Jinyoung Sandhar Mechatronics will allow Sandhar to concentrate its resources on high-potential growth areas, enhancing both its product offerings and market reach.

Overall, these strategic moves highlight Sandhar Technologies’ commitment to sustainable growth, operational efficiency, and leadership in the automotive component industry. With its enhanced die-casting capabilities, streamlined operations, and sharpened focus on its core strengths, Sandhar is poised to continue its journey as a leader in the global automotive sector.