Suprajit is pleased to announce that it has successfully concluded the acquisition of Light Duty Cable (LDC) business unit from Kongsberg Automotive ASA (‘Kongsberg Automotive’). The LDC business unit of Kongsberg Automotive, supplying to automotive, non-automotive and 2-wheeler segments along with Electro-Mechanical Actuators (EMA) is now part of Suprajit Group. All the four LDC related entities are now 100% owned stepdown subsidiaries of Suprajit through Suprajit USA, Inc.
LDC consists of three manufacturing plants located at Matamoros – Mexico, Siofok – Hungary and Shanghai – China. It has a Tech Centre at Novi, Detroit (USA) and a distribution centre in Brownsville (USA). The transaction also involves the transfer of global sales and engineering expertise related to the LDC business located in US, Germany, France, , Sweden, and the UK, to Suprajit.
The total employee strength of LDC is around 1300. The sales for the calendar year 2021 was US$ 85 million with operating EBITDA margin of about 8%. The Enterprise Value (EV) of the transaction is US$ 42 million. Suprajit expects the business to exceed US$ 100 million in the next couple of years with double digit EBITDA.
Suprajit has used a portion of cash available with the Company and balance through debt to complete this transaction, leaving behind a significant cash surplus with the Company.
LDC has marquee global customers in the automotive, non-automotive and 2-wheeler businesses including Tesla, Fiat, Land Rover, Mercedes, Honda, STIHL, Shiroki, Adient, Husqvarna, Lear, Magna, etc. Suprajit’s annual global cable capacity will now exceed 400 million. Suprajit will also emerge as a global leader in the control cable business with a strong global footprint to serve any customer in all of these segments. LDC has a complimentary manufacturing footprint, customer base, product and technology.
Suprajit will also acquire the actuation technology through this transaction, making Electro-Magnetic Actuators (EMA), a new product segment for the group. This acquisition will bring much needed focus to the cable business for the LDC division. Suprajit is confident to grow this business profitably, complementing the strengths of both LDC and Suprajit.
Ajith Rai, Founder and Chairman of Suprajit, said – “We heartily welcome all the employees of LDC to Suprajit Family on the conclusion of acquisition of LDC. It is heartening that Suprajit will emerge not only as a global leader in mechanical control cable systems but will aspire to become most preferred supplier in the world. Our combined manufacturing footprint in India, China, Hungary, USA and Mexico, with engineering centres in Novi (USA), Wichita (USA), Tamworth (UK) and Bangalore (India), along with the engineering support in multiple countries, will give Suprajit group a deep-rooted presence in this business. With 400 million annual cable capacity, Suprajit will have the capability to emerge as a `one-stop shop for cables’ in the world. We are excited about the opportunities, this acquisition will bring to Suprajit.”
Mohan N S, Managing Director and Group CEO, said – “Our strategy of Cables beyond India and in India beyond cables has been pursued with a clear focus. With this acquisition, we have demonstrated our ability to scale up to world class levels. We have also expanded our management bandwidth to manage plants in various geographies to serve our customers across the globe and truly become a global player”.
Akhilesh Rai, Director and Chief Strategy Officer, said – “LDC will form the fulcrum of a global Suprajit. Our strong push into systems through Suprajit Tech Center, along with our access to global customers and global platforms, will be a transformative acquisition for Suprajit as we move to support our customers in a holistic manner, from cables today to actuation technologies tomorrow.”
Jim Ryan, President, Suprajit USA, said “I am happy to welcome the team at LDC into the Suprajit family and I look forward to the work ahead of us to ensure that the combined value of the companies, for all stakeholders, is greater than just the sum of the two individual parts.”
Call Recording of Q4 FY23 Result Conference Call Hosted by Anand Rathi Research on 30 May 2023, at 11:00 am IST Suprajit Eng Q4FY23 Call Recording
Please find attached financial results for the Quarter and Year ended March 31, 2023
30 May 2023, at 11:00 am IST Hosted by Anand Rathi Research
Dear Members Notice is hereby given that pursuant to the provisions of Section 110 of the Companies Act, 2013 (the “Act”) read with Rules 20 and 22 of the Companies…
See attached letter for more information.
Further to our press release dated February 13, 2023, we would like to inform you that as a part of the restructuring Plan of “Phoenix Lamps Division (PLD)”, see attached…
Call Recording of Q3 FY23 Result Conference Call Hosted by Anand Rathi Research on 14 February 2023, at 11:00 am IST Suprajit Eng Q3FY23 Call Recording
The overall Indian automotive segment grew at 15% during the first nine months of the year. Against this, Suprajit’s India business grew at 19%, showing a continued robust domestic operation,…
14 February 2023, at 11:00 am IST Hosted by Anand Rathi Research
Find below attached copies of the Newspaper Advertisement published by the company in “Business Standards”, English Newspaper and “Sanjevani”, Kannada Newspaper, with respect to Financial Results for the quarter and…
We forecast revenue CAGR of 25% over FY22-25E We forecast 28% EPS CAGR over FY22-25E for Suprajit We initiate coverage with a BUY recommendation and Sep-23E TP of Rs440 Consistent…
Notice is hereby given that the 37th (Thirty Seventh) Annual General Meeting (AGM) of the Members of Suprajit Engineering Limited (“the Company”) will be held on Monday, September 26, 2022,…
We initiate coverage on Suprajit Engineering (SEL) with a BUY rating. SEL is one of the largest manufacturers of Automotive Control Cables and Halogen Lamps, supplying to domestic & international…
Suprajit Engineering (SEL) has consistently grown ahead of industry through inorganicopportunities. Through its newest acquisition (LDC), company is well placed to increaseits global market share in control cables.
Suprajit Engineering Limited’s (Suprajit’s) Q2FY2022 numbers were better than expectations, with revenue, EBIDTA, and PAT improving by 36.5%, 62.6%, and 99.8%, respectively, on a q-o-q basis. Net revenue improved by…
Please check out here the Complete details of Analysis from Spark Capital.
Suprajit Engineering (SEL) reported consolidated EBITDA margin of 16.2% (-40bps YoY,+260bps QoQ), 140bps above JMFe driven by strong margin performance in automotive cable division. Management expects the headwinds such as…
Suprajit Engineering (SEL) reported Q2FY22 EBITDA of INR801mn beating our estimate by 22% due to a strong revenue performance. Acceptance of price hike for earlier quarters by OEMs (~2% of…
