Greaves Cotton has acquired an additional 10% stake in its subsidiary, Excel Controlinkage Private Limited, for Rs 62.38 crore, bringing its total ownership in the company to approximately 70%. This acquisition, conducted through the secondary market, enhances Greaves Cotton’s involvement in the mechanical and electronic motion control segment.
The company detailed the timeline for completing the acquisition, noting that the purchase of 60% of Excel Controlinkage’s shares had a longstop date of April 30, 2023. Additional share purchases are scheduled to occur annually, with the final tranche set for completion by August 2026.
A longstop date in mergers and acquisitions refers to a deadline by which all conditions for the transaction must be met and the deal finalized. If the transaction isn’t completed by this date, the agreement may either be terminated or allow one of the parties to withdraw.
According to a regulatory filing, Excel Controlinkage reported revenues of Rs 167 crore in FY22, Rs 120 crore in FY21, and Rs 105 crore in FY20. Greaves Cotton’s management highlighted that this acquisition aligns with its strategic goal of diversifying product offerings and strengthening its position in the commercial vehicles sector, with a focus on developing a comprehensive mobility ecosystem.
Founded in April 1994, Excel Controlinkage is a key player in the motion control systems industry, known for manufacturing push-pull cables, levers, and sensors. The company is recognized for its strong market presence and industry-leading margins, offering a comprehensive product portfolio that includes heavy-duty push-pull cables, mechanical levers, and electronic throttle levers.
Excel Controlinkage serves a wide range of sectors, including commercial vehicles, construction equipment, agriculture, material handling, marine, and special-purpose vehicles (SPVs), providing products to both original equipment manufacturers (OEMs) and the aftermarket. It also produces heavy-duty push-pull cables, managing the entire process from inner and outer conduits to end fittings.
