Pricol Limited (BSE: 540293; NSE: PRICOLLTD), a leading automotive technology and precision engineering company, has approved a Scheme of Arrangement to demerge its Driver Information and Connected Vehicle Solutions (DICVS) business into Pricol Autotech Limited. The move is aimed at creating two focused businesses with independent growth strategies, dedicated leadership and enhanced operational agility.
Following the demerger, Pricol Limited will continue to house its Actuation, Control and Fluid Management Systems (ACFMS) and Precision Products (P3L) businesses, while Pricol Autotech will focus exclusively on advanced automotive electronics and connected mobility solutions. The proposed restructuring is designed to simplify the group’s corporate structure and enable both businesses to pursue their respective strategic priorities with greater focus. Separate management teams and capital allocation frameworks are expected to improve decision-making, strengthen governance, enhance operational efficiency and support faster responses to changing customer requirements and technology trends.
The DICVS business has developed into a specialised platform serving the evolving needs of the automotive industry with products such as instrument clusters, integrated infotainment systems, e-cockpit solutions, telematics, battery management systems and sensors. As the market for connected and intelligent mobility solutions continues to expand, the independent structure is expected to provide greater flexibility to invest in technology, strengthen strategic partnerships and accelerate innovation.
Pricol Limited will continue to strengthen its position in actuation, control and fluid management solutions, while also expanding its precision engineering portfolio. These businesses are supported by growing opportunities in domestic and export markets and remain central to the company’s long-term growth strategy.
Under the proposed scheme, shareholders of Pricol Limited will receive one fully paid-up equity share of Pricol Autotech Limited for every one equity share held in Pricol Limited, resulting in identical shareholding in both companies. Pricol Autotech is proposed to be listed on both the National Stock Exchange of India and BSE, subject to regulatory, statutory and shareholder approvals.
Commenting on the decision, Vikram Mohan, Chairman and Managing Director, Pricol Limited, said, “The proposed demerger marks an important step in Pricol’s evolution. Our businesses have matured into distinct platforms with different customer requirements, technology priorities and growth opportunities. Creating two independent companies will enable each business to sharpen its strategic focus, strengthen innovation capabilities and pursue long-term growth with greater agility. We believe this restructuring will enhance competitiveness and deliver sustainable value for shareholders, customers and other stakeholders.”
Headquartered in Coimbatore, Pricol Limited is one of India’s leading automotive technology and precision engineering companies. Since its inception in 1975, the company has built a strong presence across domestic and international markets, supplying more than 5,200 product variants to leading automotive original equipment manufacturers. Pricol operates 15 manufacturing facilities across India, one manufacturing unit in Indonesia and international offices in Dubai, Tokyo and Singapore, serving customers across the two-wheeler, passenger vehicle, commercial vehicle and off-highway vehicle segments.
