Sundaram-Clayton Limited (SCL), a leading manufacturer of high-pressure and low-pressure aluminium die-cast components, has entered into a definitive agreement to sell its aluminium die-casting business at its Hosur plant to Sandhar Ascast Private Limited (formerly Sandhar Tooling Private Limited), a wholly-owned subsidiary of Sandhar Technologies Limited. The sale will be executed as a going concern on a slump sale basis, with a total cash consideration of ₹163 crore.
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The agreement was signed on March 26, 2025, with the transaction expected to be completed by March 31, 2025, subject to customary conditions precedent. As per the agreement, ₹113 crore will be received by March 29, 2025, while the remaining ₹50 crore will be paid by April 15, 2025.
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Strategic Move to Streamline Operations
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Sundaram-Clayton’s decision to divest its aluminium die-casting business is aimed at optimizing operations and focusing on its core competencies. The company reported that this business contributed ₹357.1 crore in revenue in FY 2023-24, accounting for 17% of its consolidated turnover.
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Speaking about the sale, a company spokesperson stated, “This strategic move aligns with our long-term vision to streamline operations and strengthen our focus on key business areas that drive growth and shareholder value.”
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Buyer Details: Sandhar Ascast Private Limited
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Sandhar Ascast Private Limited, a subsidiary of Sandhar Technologies Limited, is engaged in the manufacturing of automotive components for leading Original Equipment Manufacturers (OEMs) in India and international markets. The company generated ₹17.38 crore in revenue with a net worth of ₹22.63 crore in FY 2023-24.
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Key Highlights of the Transaction
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- Total Consideration: ₹163 crore ( ₹113 crore by March 29, 2025, and Rs 50 crore by April 15, 2025).
- Buyer: Sandhar Ascast Private Limited (formerly Sandhar Tooling Private Limited).
- Business Unit Sold: High-pressure and low-pressure aluminium die-casting business at Hosur plant.