Sundaram-Clayton Limited (SCL) has entered into a Business Transfer Agreement to sell its high-pressure and low-pressure aluminum die-casting operations at its Hosur plant to Sandhar Ascast Private Limited. The transaction, executed on March 26, 2025, is structured as a slump sale on a going concern basis.
According to the company’s disclosure, the division contributed USD 42.9 million in revenue, representing 17% of SCL’s total revenue for the 2023-24 financial year. The net profit attributable to this business segment was USD 240,000, accounting for 2.1% of SCL’s overall profitability during the same period.
The deal is valued at USD 19.6 million, with an initial payment of USD 13.6 million due by March 29, 2025, and the remaining USD 6 million to be paid by April 15, 2025, subject to adjustments as outlined in the agreement.
Sandhar Ascast Private Limited, a wholly owned subsidiary of Sandhar Technologies Limited, specializes in manufacturing automotive components for original equipment manufacturers (OEMs) in India and overseas. In the 2023-24 financial year, Sandhar Ascast reported a turnover of USD 2.1 million and a net worth of USD 2.7 million.
Sundaram-Clayton stated that the transaction is part of its strategic decision to streamline operations and focus on core business areas. The transfer does not involve any related party transactions, and there will be no change in SCL’s shareholding pattern following the sale.
The company expects to complete the transaction by March 31, 2025, subject to fulfillment of agreed conditions.