Craftsman Automation has signed a definitive agreement to acquire 76% of DR Axion India’s share capital (DRAIPL). DR Axion India will become a subsidiary of the company after the transaction is completed. Both the company and DRAIPL operate in the auto component space and have complementary strengths. According to the company, this acquisition will help both entities leverage their strengths and create better synergies.
The company will pay Rs 375 crore to acquire 8,57,65,631 equity shares, representing 76% of total equity share capital on a fully diluted basis. The transaction is expected to be completed by March 31, 2023.
DRAIPL produces aluminium cylinder heads, which are a critical auto component used in PVs as the outer shell of internal combustion engines. In Chennai, it has a single manufacturing facility that uses low pressure and gravity die casting processes. For the fiscal year ended 31 March 2022, DRAIPL reported a revenue of Rs 715.94 crore.
Craftsman Automation is a diversified engineering firm with vertically integrated manufacturing capabilities. The company operates in three business segments: automotive-powertrain and others, automotive-aluminum products, and industrial and engineering.