Shriram Pistons & Rings Limited (SPRL) has successfully completed the acquisition of 100% shareholding in Karna Intertech Private Limited, solidifying its position in the manufacturing of die casting moulds. This strategic move aligns with SPRL’s vision of achieving operational efficiency and enhancing its supply chain capabilities for high-precision manufacturing.

This acquisition, valued at INR 50 Mn, was completed on April 1, 2025, following the earlier announcement made by the company on March 7, 2025 regarding the signing of the Share Purchase Agreement (SPA). The transaction marks a significant step in SPRL’s expansion strategy, ensuring long-term growth and synergy within its existing operations.

Details of the Acquisition

Karna Intertech Private Limited has been a key supplier of gravity die casting moulds to SPRL. These moulds play a crucial role in the manufacturing of piston castings, a core component of SPRL’s business. The high level of precision and confidentiality involved in the design of these moulds makes Karna’s expertise valuable for SPRL.

By acquiring 100% control over Karna, SPRL can now directly oversee production quality, innovation, and cost efficiency in its manufacturing processes. Karna’s tool room, located in Bahadurgarh, Haryana, is equipped with modern CNC machine tools and CAD/CAM facilities, making it a highly efficient unit for die casting mould production.

Why This Acquisition is Significant

1. Strengthening SPRL’s Supply Chain

With Karna under full ownership, SPRL gains complete control over the manufacturing of die casting moulds, reducing its reliance on external vendors. This move ensures better quality control, faster turnaround times, and cost optimization.

2. Enhancing Confidentiality & Security

Given that SPRL provides the mould design, the acquisition helps in protecting sensitive and proprietary designs, reducing the risk of intellectual property leaks and ensuring exclusive in-house production.

3. Long-Term Growth & Expansion

SPRL is focusing on synergizing operations and preparing for future expansion. With Karna’s highly skilled workforce and state-of-the-art facilities, SPRL can scale up production to meet increasing demand while maintaining precision and quality.

Financial and Regulatory Aspects

• Cost of Acquisition: The total deal is valued at INR 50 Mn, completed via cash consideration.

• Regulatory Approvals: The acquisition did not require any governmental or regulatory approvals.

• Revenue Performance of Karna:

  • FY 2023-24: INR 49.98 Mn

  • FY 2022-23: INR 46.02 Mn

  • FY 2021-22: INR 37.78 Mn

Industry Impact & Future Outlook

The manufacturing sector, particularly the automotive and engineering industries, has been witnessing an increase in mergers and acquisitions. Companies are consolidating operations to achieve greater efficiency and vertical integration. With SPRL’s acquisition of Karna, the company is positioning itself as a more self-reliant player in the market.

This acquisition reflects SPRL’s proactive approach in securing critical manufacturing components and future-proofing its operations. The move aligns with its broader corporate strategy to expand its production capabilities and improve its operational efficiencies.

Conclusion

The acquisition of Karna Intertech Private Limited is a significant milestone for Shriram Pistons & Rings Limited, reinforcing its commitment to quality, precision, and innovation. By taking complete control of Karna, SPRL is poised to enhance its supply chain, secure sensitive design technologies, and drive long-term business growth.

With strong financial performance and a clear strategic vision, this acquisition strengthens SPRL’s market presence and ensures sustained competitiveness in the industry. The deal marks yet another step towards self-reliance and manufacturing excellence, making it a noteworthy development in the Indian manufacturing sector.

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