 "Panalfa Autoelektrik's alternator")
Minda Corporation - an automotive component maker and the flagship company of Spark Minda, Ashok Minda Group - has acquired Panalfa Autoelektrik Limited (PAL) for about Rs 45.5 crores. PAL, founded in 2007, is a part of the Panalfa Group, a major original equipment manufacturer of automotive systems and components in India.
PAL manufactures reduction gear starter motors and alternators as per latest international technology and quality standards under the Panalfa brand. It caters to the agriculture machinery, stationary engine, construction equipment and automotive markets globally. Reduction gear starter aotors are fast replacing the conventional direct-drive starter motors. The optimum weight and dimensions of these starter motors help deliver much greater torque and cranking strength. Alternators, with their high quality avalanche diodes, help enhance an automobile’s battery life.
Panalfa Autoelektrik, which has a manufacturing facility at Bawal (Haryana), suuplies its products to OEMs in India and also exports to the US and European markets. Key customers of PAL include Eicher, Escorts, Greaves, HMT, Magneton, New Holland, Polaris, Sonalika and TAFE. PAL had revenues of over Rs 70 crores in FY2015 and employs about 400 people.
Ashok Minda, Group CEO, Spark Minda, Ashok Minda Group, said, “The acquisition of Panalfa Autoelektrik Limited is a step in our overall strategy to become a leading player in auto component and auto electricals sector. With the help of this acquisition, Spark Minda, Ashok Minda Group will be able to add new product in its ambit and helping us to sustain our ongoing growth year-on-year (YoY). Our group already have presence in aftermarket business with network of more than 400 dealers. This will further help in increasing our penetration in aftermarket business of starter motors and alternator. The transaction will also enhance our relationships with OEMs, particularly in the commercial vehicle segment.”
This transaction will not only add highly complementary products to Minda Corp’s existing product portfolio but also provide access to additional high profile customers, particularly in the commercial vehicle segment. Access to new manufacturing technology from Magneton, used for starter motors and alternators, is another key advantage. Post this acquisition, Minda Corp will have a total of 31 operational facilities including 26 in India. The transaction enables Minda Corp to better service its global OEM and tier I blue chip customer base, and reinforces senior management’s focus on operational excellence.
