Shares of Gabriel India Ltd, a leading manufacturer of automotive components and the flagship company of the ANAND Group, soared 20 per cent to hit the upper circuit at Rs 842.75 on the National Stock Exchange (NSE) during early trade on Tuesday. The sharp rally followed the company’s announcement of a major strategic restructuring, aimed at consolidating group operations to accelerate growth and diversify its portfolio.
Gabriel India to merge AIPL and Anchemco to streamline automotive businesses
In a regulatory filing on June 30, Gabriel India said its board had approved a composite scheme of arrangement involving Asia Investments Private Limited (AIPL) and Anchemco India Private Limited (formerly Andasia Private Limited). The scheme will result in the vesting of AIPL’s automotive business—including Anchemco’s manufacturing of brake fluids, radiator coolants, diesel exhaust fluid (DEF), and PU/PVC-based adhesives—into Gabriel.
The scheme also brings Gabriel control of AIPL’s investments in key joint ventures: Dana Anand India Private Limited, Henkel ANAND India Private Limited, and ANAND CY Myutec Automotive Private Limited (ACYM).
Share swap to enable smooth integration
As part of the merger, Gabriel will issue 1,158 equity shares of Rs 1 each for every 1,000 equity shares of Rs 10 each held in AIPL. This share swap is designed to align shareholder interests across the restructured entity and pave the way for a unified corporate structure.
Gabriel India broadens automotive product portfolio beyond suspension systems
Traditionally known for its ride control products such as shock absorbers, front forks, and struts, Gabriel India will, post-merger, diversify into new high-potential categories. These include electric vehicle (EV) drivetrain components, transmissions, NVH (Noise, Vibration, and Harshness) solutions, synchroniser rings, aluminium forgings, and aftermarket chemical products like coolants and DEF. The company will also strengthen its railways portfolio and further scale up its recently launched sunroof manufacturing business.
EV components and aftermarket growth to drive long-term value
The restructuring positions Gabriel India to capitalise on the rising demand for EV components and aftermarket automotive solutions. The integration of diverse technologies and products is expected to help the company reduce its dependence on any single product line or market segment, opening up new avenues in both domestic and global markets.
Stronger OEM positioning and improved financial performance expected
Gabriel said the transaction is expected to enhance its standing with global OEMs, broaden its customer base, and give it access to futuristic technologies. From a financial standpoint, the company expects the restructuring to lead to EPS accretion, higher return on equity (ROE), and improved operating margins, creating long-term value for shareholders.
Gabriel India’s manufacturing capacity and industry reach
Gabriel India currently operates nine state-of-the-art manufacturing plants and three satellite facilities, with a combined annual capacity of 60 million ride control units. It serves a wide range of automotive segments, including two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, and the railways.
ANAND Group’s strong presence in the Indian automotive ecosystem
The ANAND Group, founded in 1961, is one of India’s most established automotive component groups. It comprises 23 companies, including eight joint ventures and four technical collaborations, with a footprint across more than 75 locations in India. The group supplies to most major domestic and global automotive OEMs and continues to invest in next-generation mobility technologies.
