Greaves Cotton to acquire motion-control systems player Excel Controlinkage for INR 385 crores

Greaves Cotton has announced the signing of a binding term sheet to acquire 60% shareholding in Excel Controlinkage Pvt Ltd as the first tranche, from the 4 tranches planned till FY26 to acquire 100% stake, for a value of INR 385 crore, subject to closing adjustments. The latest acquisition will enable Greaves to build a complementary product portfolio with common customer segments, commence its international footprint and export revenues, and aid in the growth of the fuel-agnostic powertrain portfolio. As Greaves strengthens its EV ecosystem, the latest initiative also accentuates Greaves’ strategy of building mechanical to mechatronic to electronic capabilities.

Greaves Cotton reported consolidated revenues as INR 514 cr for Q3 FY’23, of which INR 142 cr is contributed by Greaves Electric Mobility.

Excel is one of the largest players in mechanical and electronic motion control systems, with an integrated capability to manufacture Push Pull cables, levers & sensors. Excel’s portfolio includes heavy-duty push-pull cables, mechanical levers & linkages, and electronic throttle levers catering to customer segments like Commercial Vehicles, Construction Equipment, Agriculture, Material Handling, Marine, and SPVs, supplying directly to the vast majority of the OEMs as well as for aftermarket. Excel generates ~40% of its revenue from the Exports market, including Marine segment and Industrial aftermarket. The company achieved a turnover of more than INR 166 crores with a profit before tax of INR 36.7 crores in FY 2022.

Commenting on the development, Mr Nagesh Basavanhalli, Executive Vice Chairman, Greaves Cotton Limited, “Greaves has set a distinguished track record in moving India sustainably for decades. The acquisition is highly profitable and margin accretive at a consolidated level and complements our vision to build new competencies and accelerate the growth of clean-tech, last-mile mobility. Excel has established itself as one of the leading players in the manufacturing of mechanical and electronic motion control systems with integrated manufacturing capabilities in India. By harnessing our common synergies, we will be positioned to unlock new growth opportunities for Greaves and emerge as a strong catalyst for a self-reliant, full-stack, Made in India mobility ecosystem”.

Mr Ashok Mrig, Founding Partner, Excel said, “We have created Excel as a proud engineering & 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 the interest of all stakeholders.”

 Dr Arup Das, MD, Greaves Cotton Limited, said, “Excel acquisition is a synergistic fit, and offers multiple levers for unlocking significant synergies in areas like geography and product portfolio and customer segments. It will also strengthen Greaves’ presence in commercial vehicle and off-highway segment as well.”

Singhi Advisors are the M&A advisors to this transaction.