The acquisition of Kcaltech System India Private Limited (KCAL India), a subsidiary of South Korea’s KC Altech Company Limited, will enhance the presence of TII, a Murugappa Group firm, in the HVAC market.

Nov 29, 2024

Murugappa Group’s Tube Investments of India Limited has signed an executive agreement to acquire a 67 percent equity stake in Kcaltech System India Private Limited (KCAL India), a subsidiary of South Korea’s KC Altech Company Limited, for INR 62 crore.

The Murugappa Group firm said in a statement that the strategic acquisition would enable it to strengthen its position in the growing automotive sector, particularly in the domain of aluminium tubes and parts used in heating, ventilation, and air conditioning (HVAC) systems for automobiles.

The proposed investment would further support KCAL India’s expansion plans, including increasing its manufacturing capabilities, it added. 

TII Managing Director Mukesh Ahuja said the move would enable TII to tap into the expanding market for aluminium components used in automobile HVAC systems, aligning its capabilities with the increasing demand for these solutions in India.

As per TII, the proposed acquisition aligned with its long-term growth strategy as it continued to diversify into adjacent business segments that complemented its core offerings.

With the rising demand for automobiles in India, fuelled by increasing population, disposable income and government initiatives, TII was targeting the aluminium tubes and parts segment as a key growth area, it added.

The acquisition is expected to be completed on or before January 31, 2025, subject to satisfactory completion of the conditions in the agreement.

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Chennai-based KCAL India is a prominent manufacturer of aluminium tubes and parts for HVAC applications in the automobile industry. The company also trades in aluminium forged parts, such as pistons, shoes, and scrolls.

KCAL Korea President Andrew Choi said the collaboration with TII would provide new opportunities to KCAL India and foster mutual growth. KCAL India would immensely benefit from the industry expertise and customer relationships of TII in the automobile segment.