Greaves Cotton to acquire motion-control systems player Excel Controlinkage

Mumbai: Engineering company Greaves Cotton on Thursday signed an agreement to acquire the entire shareholding in motion-control systems player Excel Controlinkage for a consideration of Rs 385 crore in a four-tranche deal.

In the first tranche to be completed in FY26, Greaves Cotton will acquire 60 per cent in Excel Controlinkage and in the successive three tranches acquire 100 per cent stake for a cumulative value of Rs 385 crore, subject to closing adjustments, the companies said in a joint statement.

Established in 1994 in Nagpur, Excel's product portfolio includes heavy-duty push-pull cables, mechanical levers and linkages, and electronic throttle levers, catering to commercial vehicles, construction, agriculture, material handling and marine equipment, industrial machines, boats and special purpose vehicles.

The acquisition will enable Greaves to build a complementary product portfolio with common customer segments, commence exports, apart from growing its fuel-agnostic powertrain portfolio, the company said, adding as Greaves strengthens its EV ecosystem, the deal also accentuates its strategy of building mechanical to mechatronic to electronic capabilities.

Nagesh Basavanhalli, executive vice-chairman of Greaves, said the acquisition is highly profitable and margin accretive at a consolidated level and complements the company's vision to build new competencies and accelerate the growth of clean-tech and last-mile mobility.

"Excel has established itself a leading player in manufacturing mechanical and electronic motion control systems with integrated manufacturing capabilities. By harnessing common synergies, the deal will help us to better unlock new growth opportunities and emerge as a catalyst for a self-reliant, full-stack, indigenous mobility ecosystem," he added.

Ashok Mrig, a founding partner at Excel, said Excel has been created as an engineering and product manufacturing company providing solutions to OEMs and aftermarket customers.

Arup Das, managing director of Greaves Cotton, said the acquisition, advised by the city-based Singhi Advisors, is a synergistic fit, and offers multiple levers for unlocking significant synergies in areas like geography and product portfolio and customer segments. "It will also strengthen our presence in commercial vehicles and off-highway segment as well." Greaves Cotton counter closed at Rs 137.15, 0.72 per cent down, on the BSE as against 0.23 per cent rise in the benchmark.