Mahindra acquires majority stake in DGP Hinoday Inds Ltd

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Mahindra acquires majority stake in DGP Hinoday Inds Ltd

Mahindra acquires majority stake in DGP Hinoday Industries Limited

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Mahindra and Mahindra Limited (M&M) today announced that it had entered into an agreement to acquire 66% equity stake in DGP Hinoday Industries Limited (Hinoday). M&M shall acquire the shares from the existing shareholders, DG Piramal Group and India Private Equity Fund Mauritius. Hitachi Metals holds the balance 34% equity stake.

Hinoday, based out of Pune, had commenced its operations in 1963. Hinoday is a market leader in its two business segments, Casting and Ferrites. The SG Iron Casting Division is a renowned manufacturer of cast products like crankshafts, rear axle, turbo charger, differential gear housings and brackets. The current capacity of the Casting Division is around 24,000 tonnes per annum, that is currently in the process of being expanded to 44,000 tpa. Hinoday is the largest, and technologically the most advanced manufacturer of hard and soft ferrites in India. It specializes in auto and other high end niche applications, with a capacity close to 6,000 tpa. Hinoday exports over 28% of its total sales. 

The acquisition of the majority stake marks the entry of M&M into the sophisticated SG Iron casting space.   M&M will leverage DGP Hinoday's expertise in SG Iron as a platform to help grow into one of the leading casting players in the country. M&M also sees strong growth potential in the ferrites segment. The high quality management team of Hinoday will continue to lead the company and M&M looks forward to integrating them into the Systech strategy.

Mr. Dilip Piramal, Chairman, DGP Hinoday said "Our team has grown the company from Rs. 5 Cr to Rs. Rs. 250 Cr. in the last 25 years. As I focus on the growth of our flagship company, VIP Industries, it gives me a sense of satisfaction to hand over the reigns to the trusted Mahindra Group, whose focus on Auto components will ensure that DGP Hinoday scales new heights.

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