Murugappa Group’s Tube Investments of India Ltd (TII) has announced the acquisition of a 67% equity stake in KCAL India, the Indian subsidiary of South Korea’s KC Altech Co Ltd, for ₹62 crore. The acquisition aims to bolster TII’s presence in the growing automotive sector, particularly in aluminium tubes and components used in heating, ventilation, and air conditioning (HVAC) systems for vehicles.
TII has entered into a definitive agreement to subscribe to fresh equity shares in KCAL India, with the transaction expected to conclude by January 31, 2025, subject to regulatory conditions. The investment will support KCAL India’s plans to expand manufacturing capabilities and meet the increasing demand for aluminium components in India’s automotive market.
“This acquisition marks TII’s entry into the growing automobile HVAC ecosystem, aligning our capabilities with the rising demand for aluminium components in this segment,” said TII Managing Director Mukesh Ahuja.
Chennai-based KCAL India specializes in the production of aluminium tubes and parts for automotive HVAC systems and trades in aluminium forged components such as pistons and scrolls. Andrew Choi, President of KCAL Korea, expressed confidence in the partnership, highlighting how TII’s expertise and strong customer relationships will drive KCAL India’s growth.
TII stated that this move aligns with its long-term strategy to diversify into complementary business segments. The company aims to capitalize on the increasing demand for automobiles in India, driven by a growing population, rising disposable income, and government initiatives.
KCAL India, based in Chennai, is a leading manufacturer specializing in aluminium tubes and parts for heating, ventilation, and air conditioning (HVAC) applications in the automotive industry. As a subsidiary of South Korea’s KC Altech Co Ltd, KCAL India also trades in aluminium forged parts, such as pistons, shoes, and scrolls.
The company has established itself as a significant player in the automotive sector, supplying critical components used in HVAC systems for vehicles. With a strong manufacturing base and expertise in aluminium components, KCAL India is well-positioned to benefit from the growing demand for automotive parts and the expansion of the Indian automotive market.
Tube Investments of India Ltd, a Murugappa Group company, is a diversified manufacturer with a strong presence in various sectors such as engineering, automotive, and metal products. Headquartered in Chennai, TII is recognized for its expertise in manufacturing precision steel tubes, aluminium products, and automotive components.
The company has a history of innovation and excellence, focusing on the growing demand for automotive HVAC systems, and has made strategic moves to expand its portfolio in this sector. Tube Investments is committed to diversifying its business, enhancing its capabilities, and tapping into new growth areas to align with India’s expanding automotive and infrastructure market.
