Acquisition of majority stake in Excel Controlinkage, a leading motion-control systems player

  • Powertrain business has registered Y-o-Y revenue growth of 26%
  • Auto engines registered YoY growth of 136%
  • B2C business contribution at 50%

Greaves Cotton Limited, one of India’s leading diversified engineering companies, has announced its consolidated revenues of INR 514 crore for the Q3FY23, recording growth of 6% over Q3FY22. The Company reported standalone revenues of INR 365 Crores and EBITDA of INR 39 crores in Q3.

Company reported 9M FY23 consolidated revenues of INR 1873 crores, with YoY growth of 72%.

Company also announced signing of binding term sheet to acquire 100% stake through multiple tranches in Excel Controlinkage Pvt Ltd. The deal value Excel Controlinkage at 7.5x of FY23 Normalised EBITDA for first Tranche subject to maximum Enterprise Value of INR 385 crore.

Commenting on the new developments, Mr. Nagesh Basavanhalli, Executive Vice Chairman of Greaves Cotton Limited, said: “Our diversification strategy of transitioning from a metal-based, manufacturing engineering company to an electric, electronic and mechatronics based clean mobility technology company, continues with the acquisition of Excel. It complements our vision to build new competencies and accelerate the growth of clean-tech, last-mile mobility. By investing in forward looking technologies, we are unlocking new avenues of growth for Greaves. Our product roadmap with a wide range of new electric 2 & 3-wheelers, and our new e-powertrain offering showcased at the auto expo, bears testimony to our purposeful stride towards emerging as India’s most complete last mile mobility ecosystem player. Our margins have improved, & our cash position continues to be strong. We are optimistic about sustained growth with all the new developments.“

Mr. Ashok Mrig, Founding Partner, Excel, said: “We have created Excel as a proud engineering & 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.”

Dr. Arup Basu, MD, Greaves Cotton Limited, said: “Excel Controlinkage 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.”

Acquisition of Excel to unlock synergies and add value for Greaves

The latest acquisition is highly profitable & margin accretive at a consolidated level. It 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 acquisition also accentuates Greaves’ strategy of building mechanical to mechatronic to electronic capabilities.

Excel is one of the largest players in mechanical and electronic motion control systems with integrated capability to manufacture Push Pull cables, levers & sensors. Excel’s wide range of portfolio includes heavy duty push pull cables, mechanical levers & linkages and electronic throttle levers catering to customer segment like Commercial Vehicles, Construction Equipment, Agriculture, Material Handling, Marine and SPVs, supplying directly to vast majority of the OEMs as well as for aftermarket.