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Pricol, a maker of auto parts based Coimbatore, seeking to finalize nearly a half dozen partnerships in the coming months to sources of technology while simultaneously beginning with the vertical rotation process in separate companies to unlock shareholder value With revenues of Rs 1,400 crore in fiscal 2001, Pricol is a Tier 1 supplier to major manufacturing companies with two wheels, three wheels and four wheels, Hero MotoCorp, Bajaj Auto, Maruti Suzuki, Tata Motors, Ashok Leyland and Mahindra.
Before the vertical
The three companies of the company perform vertical information systems on the pilot (DIS) and sensors, pumps and allied products and telematics. They will be interviewed in separate undertakings, with Pricol being the parent We are three companies entered into. DIS is actually a technology company while the pump sector is an automatic component activity. (So) we are not able to attract the right partners for technology or equity. From 2022, we will begin to slice the company into three, “said Vikram Mohan, Managing Director and CEO of Pricol.
Due to the diversification of businesses, Pricol, which started as an auto component manufacturer, has not been able to meet the demands of investors, who are willing to provide funding only in specific business interests. The company hopes that by intervening in his business, he will be able to convince investors to exploit the Pricol “Each entity will have a technology partner or private equity partner (PE). – partners who can take the company to other geographies whole process should be completed next year This is a. process six to nine months because it implies approval of shareholders and a whole bunch of regulatory procedures. this is the value of Pricol which will provide flexibility and leverage, “said Mohan The new entities formation process will be completed over the next 12-15 months and the company hopes to have on board investment partners by the end of 2002 “At this point, we do not talk to anyone (investors). We will begin to organize dialogues from September (2022) completed the by March 2023, because at that time, I will have products with the right partners (technology), “said Mohan.
Search for technological partners
In August, Pricol announced a strategic partnership with Candera to Austria in order to access global human machine interface solutions for its new generation of DIS. Pricol continues its technical expertise for future business development We will have four to five partners for technology and announce in the next six to eight months. We have three vertical products and we are entering a fourth vertical product, which will be an agnostic-powered and used in any type of commercial vehicles with two wheels and off road. We talk to partners and product testing, but we are bound by a non-disclosure agreement (NDA), so we can not disclose the type of product, “said Mohan.
pandemic impact
As he did with the rest of the auto industry, income Pricol Pandemic Pandemic Covid-19. However, the company says it was through most of its spending plans capital (CAPEX) just before the pandemic, adding two new plants “Just before the pandemic has hit us, we went for a massive capex round where we added two new plants and we have brought an increase in the capacity of our existing plants, supposed to generate 2,400 crowns a company with more than two to three years, “said Mohan.
“If everything was normal this year, we would have made Rs 1800 crore during the financial year 2002 and of 2 300-2 400 crores in 2002. So accordingly, we are extremely lightweight capex this year and next year, “he added”We have a lot of free cash flow, even at lower sales levels and that is how we will become a debt-free company over the next 12 to 18 months. This will allow us to have a very strong balance sheet and to obtain better credit scores, “said Mohan.
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