Pitti Engineering Acquires Dakshin Foundry for ₹153 Crore.

Pitti Engineering has signed an agreement to acquire the entire equity share capital of Dakshin Foundry (DFPL) for ₹153 crore.

The acquisition cost includes the business value and working capital of DFPL as of the acquisition date. DFPL, which is debt-free, had a positive cash and bank balance of ₹43 crore at the end of June.

Pitti Engineering aims to complete the acquisition within 15 days of signing the definitive agreement.

DFPL specializes in manufacturing high-quality castings in ductile iron, grey iron, low carbon, alloy steel grades, and simo iron castings. It operates two manufacturing facilities in Hosakote, Bengaluru, with a combined capacity of 4,200 tonnes per annum.

Akshay S. Pitti, Managing Director of Pitti Engineering, stated that the acquisition of DFPL will create significant synergy with the existing business. "DFPL would add to our production capacity and operational strength. The acquisition also aligns with our inorganic growth strategy," he added.

DFPL's revenue increased by 22 percent last fiscal year to ₹71 crore, up from ₹58 crore in FY22, while EBITDA rose to ₹21 crore from ₹10 crore during the same period.

HBL