Pitti Engineering has signed an agreement to acquire the entire equity share capital of Dakshin Foundry (DFPL) for ₹153 crore. This acquisition includes the business value and working capital of DFPL as of the acquisition date. DFPL is debt-free and has a positive cash and bank balance of ₹43 crore as of the end of June.
The acquisition is expected to be completed within 15 days of signing the agreement. DFPL manufactures high-quality castings in ductile iron, grey iron, low carbon, alloy steel grades, and simo iron castings. It operates two manufacturing facilities in Hosakote, Bengaluru, with a total capacity of 4,200 tonnes per annum.
Akshay S Pitti, Managing Director of Pitti Engineering, stated that the acquisition of DFPL will greatly synergize with the existing business. “DFPL will enhance our production capacity and operational capabilities. This acquisition is also in line with our strategy for inorganic growth,” he remarked. DFPL’s revenue saw a 22 percent increase in the last fiscal year, reaching ₹71 crore compared to ₹58 crore in FY22, while EBITDA rose to ₹21 crore from ₹10 crore during the same period.
Pitti Engineering, specializes in manufacturing a wide array of electrical rotating machines and components. Founded in 1983, the company has established itself as a key player in the industry, delivering high-quality products that cater to diverse sectors including power, transportation, and industrial applications. Known for its advanced engineering capabilities and commitment to innovation,
Pitti Engineering continually invests in state-of-the-art technology and processes to meet the evolving demands of its customers. The company’s robust infrastructure, skilled workforce, and customer-centric approach have enabled it to achieve sustained growth and a strong market presence. Through strategic acquisitions and a focus on both organic and inorganic growth, Pitti Engineering is well-positioned to expand its footprint and enhance its competitive edge in the global market.
