February 9, 2025 – Banco Products (I) Limited (NSE: BANCOINDIA) has announced the acquisition of a specific business undertaking of Padra Coating Works LLP. The acquisition focuses on the coating and plating of automobile gaskets, radiator parts, and components.
Key Details of the Acquisition:
- Type of Acquisition: Business Undertaking (not entity acquisition)
- Date of Event: February 8, 2025
- Acquirer: Banco Products (I) Ltd.
- Target Business: Coating & Plating operations of Padra Coating Works LLP
- Industry: Auto Ancillaries
- Consideration: ₹25.3 lakh (cash)
- Financials of Acquired Business (FY24):
- Turnover: ₹1.75 crore
- Profit After Tax (PAT): ₹7.5 lakh
- Net Worth: ₹25.7 lakh
- Regulatory Approvals: Required; subject to compliance
- Completion Timeline: Expected by June 30, 2025, subject to definitive agreements
Strategic Rationale
Banco Products stated that the acquisition aligns with its strategic objectives of enhancing control over quality and supply chain management. Given the critical nature of its operations and stringent Original Equipment Manufacturer (OEM) requirements, this move ensures seamless production standards and consistent quality in powder-coated parts.Other Considerations
- The transaction is not a related party transaction.
- The deal does not involve acquiring shareholding or control over Padra Coating Works LLP.
- Banco will not acquire any equity stake, but rather, the business operations and associated assets.