Ramkrishna Forgings on Thursday said its board has approved the acquisition of up to 51% stake in Tsuyo Manufacturing, a startup engaged in powertrain solutions for electric vehicles for an undisclosed amount.
“The Board of Directors of Ramkrishna Forgings Limited (“Company"), one of the leading suppliers of rolled, forged, and machined products has approved an investment to acquire upto 51% voting rights of Tsuyo Manufacturing Private Limited (“Tsuyo"), a Make-In-India start-up company engaged in powertrain solutions for electric vehicles," the company said in a statement.
This proposed investment will help Tsuyo to use the technological expertise and manufacturing skills of both organizations to enhance its product portfolio and expand its facilities for the manufacture of motors, controllers, e-axles, and differentials.
The company plans to invest around ₹100 crores over the next five years, which is expected to generate a turnover of around Rs 500 crores by the end of the fifth year.
“We believe that this strategic investment will enable us to further advance our commitment to supporting the growth of electric vehicles in India and beyond. We are excited to be partnering with Tsuyo and this acquisition will significantly improve our capabilities and expand our market share in the evolving EV segment. This transaction also brings numerous synergies that solidify our position as one of the top providers of forging solutions," said Lalit Khetan, whole-time director & CFO, Ramkrishna Forgings Limited.
Kolkata-based Ramkrishna Forgings is a manufacturer and supplier of closed die forgings of carbon and alloy steel, micro alloy steel and stainless-steel forgings.
