Shriram Pistons & Rings Limited has announced a major strategic acquisition, entering into a definitive agreement to acquire 100% shareholding in Grupo Antolin's Indian operations for EUR 159 million, approximately ₹16,700.00 crores on a debt-free, cash-free basis. The transaction, expected to be completed by January 2026, marks a significant step in the company's diversification strategy into powertrain-agnostic automotive products.

Acquisition Details

The acquisition encompasses three key entities in Grupo Antolin's Indian operations:

These companies operate five state-of-the-art manufacturing facilities strategically located with two facilities each in Chakankar and Pune, and one facility in Chennai. The acquired entities generated annual revenues of ₹1,179.10 crores in the financial year 2024-25, operating at EBITDA margins of 9-10%.

Product Portfolio and Market Position

The acquired companies are leading suppliers of automotive interior solutions in India, manufacturing a comprehensive range of products including headliner substrates, modular headliners, sun visors, door panels, central floor consoles, pillar trim, front-end carriers, exterior plastic parts, overhead consoles, dome lamps, ambient lighting, touch panels, and capacitive pads.

The companies serve major OEMs across India in the passenger vehicle segment, including established relationships with:

• Tata Motors
• Mahindra & Mahindra
• Volkswagen India
• Hyundai
• Renault
• Maruti Suzuki (through Krishna Maruti JV)
• Toyota

Strategic Benefits and Technology Partnership

As part of the transaction, Shriram Pistons & Rings will establish a long-term technology licensing agreement with Antolin, the global parent company headquartered in Spain. Antolin operates 111 factories across 23 countries with approximately 20,000 employees and reported revenues of EUR 4.19 billion in calendar year 2024.

The acquisition is expected to enhance Shriram Pistons & Rings' consolidated results, with powertrain-agnostic products expected to constitute around 35% of consolidated revenue post-acquisition. This strategic move aims to diversify the company's business model while positioning it as a multi-product organization.

Financial Structure and Growth Outlook

The acquisition will be financed primarily through the company's existing cash reserves, with minimal debt requirements. Management expects the overall debt-equity ratio to remain below 0.30-0.40 post-acquisition. The acquired companies demonstrate strong financial metrics with high return on capital employed (ROCE) and robust cash generation capabilities.

The management highlighted that the acquired entities have achieved cumulative compound annual growth rate (CAGR) of over 10% in the last five years, excluding formative years. The companies are expected to continue this growth trajectory while potentially benefiting from cost structure improvements and overhead reductions following the transition from global to local ownership.

Market Leadership and Competitive Positioning

The acquired companies hold market-leading positions in roof liners and headliners business in India, with significant market share across various customer segments. The business benefits from unique patented processes in forming and molding technologies that enhance product stability and properties when integrated into vehicle interiors.

The ambient lighting segment presents particular growth opportunities, as this technology is expected to become increasingly popular across all vehicle categories. The companies' expertise in touch panels and capacitive pads positions them well for future automotive interior technology trends.

This acquisition builds on Shriram Pistons & Rings' recent strategic investments in TGPEL, EMFI, and Takahata, all focused on manufacturing powertrain-agnostic products in the automotive industry. The transaction reinforces the company's commitment to delivering high-quality automotive solutions while expanding its product portfolio in areas independent of internal combustion engine powertrains.

Shriram Pistons & Rings Limited (SPRL) has entered into a Share Purchase Agreement to acquire 100% stakes in three Grupo Antolin companies for an aggregate enterprise value of €159 million (approximately ₹16,700 million). The company has now made the audio recording of its conference call discussing the acquisition publicly available.

Acquisition Details

The three companies being acquired are:

This strategic acquisition aims to expand SPRL's presence in the automotive interior solutions market, adding products such as headliners, door panels, lighting systems, and other components to its existing portfolio.

Conference Call and Regulatory Compliance

SPRL has released the audio recording of its conference call held on December 10, 2025, discussing the Grupo Antolin acquisition update. The recording is available on the company's website, ensuring transparency and compliance with SEBI Listing Regulations.

The company has confirmed that no unpublished price-sensitive information was shared during the conference call, maintaining regulatory compliance standards.

Strategic Rationale

The acquisition aligns with SPRL's objective of enhancing capabilities and expanding its presence in the automotive components industry. Key potential benefits include:

• Diversification beyond powertrain-dependent products
• Access to new product areas independent of powertrain technologies
• Strengthening SPRL's position in the auto components industry
• Potential for long-term value creation for stakeholders

As part of the transaction, SPRL plans to enter into a Technology Licensing Agreement with Grupo Antolin, which may ensure continuous access to advanced technologies and support for new product development.

Financial Context

While the full financial impact of the acquisition is yet to be determined, SPRL's recent financial performance provides context for this investment:

The company's financial position, as evidenced by the growth in assets and equity, suggests it may be well-positioned to integrate the acquired companies.

Industry Impact

This acquisition represents a significant consolidation in the Indian automotive components sector. By acquiring Grupo Antolin's Indian operations, SPRL is poised to become a more comprehensive supplier to major Original Equipment Manufacturers (OEMs) across India.

The move also reflects the ongoing trend of diversification among auto component manufacturers, as they seek to reduce dependence on traditional powertrain-related products in light of the global shift towards electric vehicles.