CIE Automotive acquires Aurangabad Electricals

Mar 13, 2019   Tier Suppliers

The Board of Directors of Mahindra CIE have reached a decision to acquire the business of Aurangabad Electricals Limited (“AEL”) through the acquisition of 100% of its equity shares for an enterprise value of INR8,756 million ($122.58 million), which includes a deferred payment estimated up to INR622 million ($8.71 million).

Founded in 1985, AEL is a manufacturer of automotive aluminum die casting products based in Aurangabad, India, with five manufacturing facilities in the country across Aurangabad, Pune and Pantnagar.

 

With more than 3,300 employees, sales of nearly INR8,500 million ($119 million) and an EBITDA over sales margin near 12%, AEL is a crucial supplier to a number of domestic and global two-wheeler and passenger vehicle OEMs and Tier 1 companies. It manufactures a variety of body, brake and engine parts through high pressure die casting as well as gravity die casting processes. AEL also has capabilities for machining, heat treatment, powder coating, assembly and leak testing, along with a modern tool room.

 

According to Jesús María Herrera, Chief Executive Officer of CIE Automotive, “We welcome AEL and team to the CIE family. We are very impressed by the business they have built and its sustainable and profitable growth. We believe that their integration in MCIE will provide important opportunities for both MCIE and AEL. This transaction also reinforces CIE’s commitment to the Indian automotive market and means a new opportunity to further extend the CIE model of manufacturing excellence in India.”

 

Ander Arenaza, Chief Executive Officer of MCIE, says “This acquisition allows MCIE to enter the aluminum die casting technology. AEL´s complementary product and customer mix leads to further diversification of the business portfolio of MCIE India, strengthening especially our presence in the two-wheeler space. The company has very good manufacturing processes and internal controls and is run by a very capable team.”

 

Rishi Bagla, Chairman and Managing Director of AEL, comments, “We are convinced that the partnership with MCIE and CIE will give the company a great boost and allow AEL to benefit from global best practices in aluminum die casting.”

Don't miss out

Be the first to know about the latest news in the automotive and transportation industry, through our weekly mailer and bi-monthly publications.

Subscribe
Three6Zero
Automotive Purchasing and Supply Chain
New Mobility
Automotive Global Awards
Automotive Leaders Summit
Future Logistics
Automotive Purchasing and Supply Chain | Three6Zero Ltd© 2004-2019