"Pitti Engineering Acquires Bagadia Chaitra Indus for ₹125 Crore"

Pitti Engineering Limited (PEL) has entered into an agreement to acquire Bagadia Chaitra Industries for an enterprise value of ₹125 crore, signaling a strategic move to strengthen its market presence and expand its asset base.

Under the terms of the agreement, PEL will inject up to ₹40 crore as funding into BCIPL upon the closing of the acquisition to facilitate the repayment of existing debt within BCIPL, according to the company's statement.

The completion of the proposed acquisition remains contingent upon the fulfillment of mutually agreed-upon conditions precedent between the parties involved.

BCIPL specializes in the manufacturing of electrical laminations and aluminum die-cast rotors catering to a diverse array of sectors including AC/DC motors, alternators, pumps, home appliances, and electrical vehicles, with a significant market presence in South India.

Situated in the Tumkur district of Karnataka, BCIPL boasts an installed capacity of 18,000 tonnes per annum.

For PEL, this acquisition represents a strategic move to extend its footprint in South India while bolstering its overall asset base. Furthermore, it opens doors to new end-use sectors and clientele. Over time, PEL anticipates leveraging synergies in sales and marketing to cross-sell its existing product portfolio to BCIPL's customer base, thereby enhancing market penetration.

Akshay S Pitti, Vice-Chairman and Managing Director of Pitti Engineering, emphasized the company's commitment to continually expanding production capacity at strategic locations and enhancing value propositions for customers. He underscored the significance of the BCIPL acquisition in aligning with PEL's strategic objectives, enhancing operational strength, and expanding its customer base.

The acquisition of BCIPL marks a pivotal step forward for Pitti Engineering, positioning the company for sustained growth and success in the dynamic market landscape.

HBL