Greaves Cotton, a leading diversified engineering companies in India,signed a binding term sheet to acquire 100 per cent stake through multiple tranches in Excel Controlinkage, a manufacturer of cables and control levers. The deal value Excel Controlinkage at 7.5x of FY23, normalised earnings before interest, taxes, depreciation and amortization (EBITDA) for first tranche subject to maximum enterprise value of Rs 385 crore. The latest acquisition will enable Greaves to build a complementary product portfolio with common customer segments, grow its international footprint and export revenues, and aid in the growth of the fuel-agnostic powertrain portfolio. As Greaves strengthens its mobility ecosystem, the latest initiative also accentuates its strategy of building mechanical, to mechatronic, to electronic capabilities.

Commenting on the development, NageshBasavanhalli, Executive Vice Chairman, Greaves Cotton said, “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 manufacturing of mechanical and electronic motion control systemswith 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.”

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

Arup Basu, MD, Greaves Cotton Limited, said “ExcelControlinkage has a complementary product portfolio serving common industry segments. The combined capabilities will expand GCL’s technical competencies and act as a springboard for profitable growth across geographies on a larger base of engineering products and services.”

Excel is one of the largest players in mechanical and electronic motion control systems with an integrated capability to manufacture push pull cables, levers and sensors. Excel’s wide range of portfolio includes heavy-duty push-pull cables, mechanical levers and linkages, and electronic throttle levers catering to customer segments like commercial vehicles, construction equipment, agriculture, material handling, marine, and SPVs, supplying directly to vast majority of the OEMs as well as for aftermarket. Excel provides the perfect opportunity for Greaves to scale up this business while also unlocking synergy benefits.