Tube Investments of India Acquires 67% Stake in Kcaltech System India for ₹62 Crore

Tube Investments of India Ltd. (TII), a prominent engineering and manufacturing company, has announced the acquisition of a 67% equity stake in Kcaltech System India Pvt. Ltd., a subsidiary of South Korea's KC Altech Co. Ltd. The transaction, valued at approximately ₹62 crore, is expected to be completed by January 31, 2025, subject to customary closing conditions.

This strategic acquisition aims to bolster TII's presence in the automotive sector, particularly in the production of aluminum tubes and components used in heating, ventilation, and air conditioning (HVAC) systems for vehicles. The investment will support Kcaltech India's plans to expand its manufacturing capabilities to meet the growing demand in the automotive HVAC market.

Kcaltech India, headquartered in Chennai, specializes in manufacturing aluminum tubes and parts for automotive HVAC applications and also trades in aluminum forged components such as pistons, shoes, and scrolls. This acquisition aligns with TII's strategy to diversify into complementary business segments and capitalize on the increasing demand for automobiles in India.

Image Source: Tube Investments to get 67% stake in Kcaltech System India for Rs 62 cr, business-standard.com, murugappa.com