M&M acquires majority stake in DGP Hinoday Industries

27 Nov 2006

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Mahindra & Mahindra Ltd has entered into a agreement to acquire 66-per cent equity of Pune-base auto components manufacturer, DGP Hinoday Industries Ltd (Hinoday) from D G Piramal Group and India Private Equity Fund Mauritius. Hitachi Metals holds the balance 34 per cent equity.

The 23-year old Hinoday is a market leader in its two business segments — casting and ferrites. Its S G Iron Casting is a renowned manufacturer of cast products like crankshafts, rear axle, turbo charger, differential gear housings and brackets with a 24,000 tonnes per annum capacity, currently being expanded to 44,000 tpa.

It is also the largest, and technologically the most advanced manufacturer of hard and soft ferrites in India. It specialises in auto and other high-end niche applications, with a capacity close to 6,000 tpa. Hinoday exports over 28 per cent of its total sales.

M&M will leverage DGP Hinoday's expertise in SG Iron as a platform to help grow into one of the leading casting manufacturers in the country and also benefit from the strong growth potential of the ferrites segment. Hinoday's management team will continue in place till its eventual integration in integrating into M&M's Systech strategy of providing a one-stop-shop for sophisticated, high-end engineered products like forgings and castings.

 

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