Gabriel India undergoes major restructuring, adding 5+ new product lines and targeting ₹50,000 crore group revenue by 2030. The stock price locked in a 20% upper circuit for the last two consecutive days.
Gabriel India Limited has announced a significant strategic wherein, the Board of Directors of Gabriel India Limited has approved a composite scheme of arrangement involving Gabriel, Asia Investments Private Limited (AIPL), and Anchemco India Private Limited (formerly Andasia Private Limited) (Anchemco).
Under this scheme, Gabriel will acquire the automotive business of AIPL. This includes Anchemco’s operations — which manufacture brake fluids, radiator coolants, diesel exhaust fluid (DEF or AdBlue), and PU/PVC-based adhesives — along with AIPL’s investments in Dana Anand India Private Limited (Dana), Henkel ANAND India Private Limited (Henkel), and ANAND CY Myutec Automotive Private Limited (ACYM). Together, these assets are referred to as the “Demerged Undertaking” and will be transferred to Gabriel.
As part of this arrangement, Gabriel will issue 1,158 equity shares of ₹1 each for every 1,000 equity shares of ₹10 each held in AIPL to the shareholders of AIPL.
This strategic move is set to consolidate a wide range of automotive components and products into Gabriel, including drivetrain products (such as transmissions for EVs), Body in White and NVH products and solutions, brass and steel synchroniser rings, aluminum forgings, and the aforementioned brake fluids, radiator coolants, and diesel exhaust fluids for 2W, 3W, and 4W vehicles and trucks, as well as PU and PVC based adhesives. This expansion, coupled with Gabriel's recent entry into the sunroof business, aims to transform Gabriel from a mono-product suspension company into a diversified, technology-driven mobility solutions provider. This diversification is expected to reduce dependency on a single product line by expanding into new segments, geographies, and the aftermarket and railways product ranges.
Gabriel anticipates that this arrangement will position it as a preferred global OEM partner, broaden its customer base, facilitate the adoption of cutting-edge technology, and strengthen its aftermarket presence through a more diverse product portfolio. The company also expects accelerated profitable growth with improved margins, leading to substantial shareholder value creation through EPS accretion and a higher return on equity.
The scheme is contingent upon receiving necessary approvals from various regulatory bodies, including the Stock Exchanges and the National Company Law Tribunal (NCLT), as well as approvals from the respective companies' shareholders and creditors. The transaction is projected to be completed within 10 to 12 months, subject to the timely receipt of these regulatory approvals.
Reflecting on the said restructuring, Mrs. Anjali Singh, Chairperson of Gabriel India, said: “This Scheme of Arrangement is in line with our Group’s strategy towards re-aligning the corporate structure, which will result in its improved competitive position, and Gabriel India will play a pivotal role. We see Gabriel India as ANAND Group’s vehicle for future growth with its ability to provide a platform to capture the value creation for all its shareholders. At a Group level, we have set ourselves a revenue target of ₹50,000 crores by 2030 and we see Gabriel India leading the way.”
Mr. Atul Jaggi, Managing Director of Gabriel India, added: “Gabriel India had traditionally been a single product company within suspension parts and shock absorbers as its key product portfolio. In 2023, we added Sunroof business as a first step towards our strategic intent to be a multi-product company. Now, with these strategic initiatives we shall have a presence in manufacturing and sale of multiple products such as brake fluid, radiator coolants, diesel exhaust fluid (DEF) / Ad-blue for 2W, 3W, 4W and truck applications and PU/ PVC based adhesives.
The Gabriel India share price has hit the 20% upper circuit for the second consecutive day. On Tuesday, the stock was locked in the 20% upper circuit. In the current week, the stock has delivered a return of 51%. As of 11:30 AM IST on Wednesday, the stock was locked at ₹1,011.30 per share.
Gabriel India is part of ANAND Group. The Company has established a significant presence across all automotive customer segments, including OEMs, Aftermarket, and exports. The company manufactures over 500 models of ride control products. Its products include shock absorbers, struts, front forks and others.
Disclaimer: The article is for informational purposes only and not investment advice.
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