In a bid to diversify its customer base, Aurangabad-based Dhoot Transmission, the second-largest Indian wiring harness maker for two wheelers, has acquired San Electromec, wire harness and control panel player that specializes in railways, defence, construction and specialty vehicle segment, for an undisclosed sum This is Dhoot’s fourth acquisition after it bought Parkinson Harness Technology (UK), TFC Cable Assemblies (Scotland) and a JV into automotive switches & controllers with Carling Technologies of the USA. Dhoot bought into Carling, instead of carving out a separate firm.
Singhi Advisors, a global investment bank focused on niche mergers and acquisitions, advised Dhoot Transmission in the transaction besides Aeterno Partners, a boutique strategy consulting and investment banking firm with extensive focus on emerging technologies and industrial automation.
Dhoot Transmission has no immediate plans for further acquisitions but is open for any new opportunities. The company has set aside close to $70 million or Rs 500 crore for organic and inorganic opportunities for the next three to five years.
“Acquisitions help us to acquire customers in newer geographies and additional capabilities in our product portfolio. We have successfully integrated our 3 acquisitions and have seen the benefits of synergies both in technological and financial advantage,” company’s managing director, Rahul Dhoot, told ET.
Founded in 2001, Bengaluru-based San Electromec Industries has solutions from cabling systems, wiring harnesses and control panels. It counts Wirtgen, Volvo, Terex, Faiveley, BEML and Tata Motors as clients.