Gabriel India Expands Mobility Portfolio with Strategic Acquisitions in Steering Systems and ADAS
Gabriel India Limited is undertaking significant inorganic growth initiatives to transition into an integrated mobility technology enterprise. The company has announced two major strategic moves: the acquisition of a stake in HL Mando Anand, a leading manufacturer of steering systems, and a joint venture (JV) with HL Klemove India, focusing on Advanced Driver Assistance Systems (ADAS) and automotive electronics.These expansions are designed to consolidate Gabriel's position across the entire automotive value chain, enabling it to serve as the primary mobility solutions platform for the Anand Group. Mrs. Anjali Singh, Executive Chairperson, and Mr. Mahendra K. Goyal, Group CEO and MD, stated that these investments represent a defining milestone in the Company's evolution toward building a diversified, technology-led automotive business.
Strengthening Offerings with HL Mando Acquisition
The company announced the acquisition of a 28.9% stake in HL Mando Anand, which is a JV between HL Mando Corporation, Korea (71.1%) and AIPL 1 (Asia Investments Private Limited).The total consideration for acquiring this stake was approximately Rs 2,231 Crore. This payment structure involves a combination of Gabriel's equity shares through a preferential allotment, amounting to roughly Rs 1,881 Cr, and a cash component of approximately Rs 350 Cr payable to AIPL 1.
This acquisition is poised to significantly strengthen Gabriel India’s profitability profile. The addition of the high-quality, mature business is expected to deliver approximately 13% EPS accretion on a proforma FY26 basis, in addition to the incremental value gained through Project Rise.
HL Mando Anand is a long-standing leader in the manufacturing of steering systems, brakes, and suspensions for both Indian and global automobile manufacturers. The company operates three manufacturing plants near Chennai and boasts strong customer relationships across various segments.
Key financial metrics for HL Mando Anand show consistent revenue growth:
| Financial Metric | FY23 (Rs Cr) | FY24 (Rs Cr) | FY25 (Rs Cr) | FY26 (Rs Cr) |
|---|---|---|---|---|
| Revenue | 4,838 | 5,188 | 5,425 | 5,886 |
| PAT | 317 | 338 | 388 | 358 |
| Net Worth | 1,231 | 1,489 | 1,739 | 1,924 |
| ROE (%) | 28.8% | 24.8% | 24.0% | 19.5% |
JV with HL Klemove India for Future Mobility
The second major move involves a partnership with HL Klemove India, a subsidiary of HL Klemove Corp (part of the HL Group, Korea). Gabriel is acquiring a stake equivalent to 30% minus one equity share in the company. The total consideration for this joint venture is approximately Rs 935 Cr.The transaction will be consummated across two tranches: Tranche 1, amounting to 75% of the consideration, and Tranche 2, which amounts to 25%.
This JV provides Gabriel with critical entry into the rapidly growing segment of ADAS (Advanced Driver Assistance Systems) and automotive electronics. HL Klemove India is noted as one of the first localized ADAS radar production lines in India, producing components such as Short Range Radar and 2W ABS ECU.
The strategic rationale behind this partnership includes securing a foothold in high-value technology before it becomes organically developed and expanding Gabriel's product portfolio to encompass advanced driver assistance technologies. This initiative aligns with the global trend that projects approximately 90% of light vehicles adopting L2+ or lower autonomous driving technology by 2030.
Strategic Outlook
The combined effect of these strategic initiatives is designed to solidify Gabriel India’s position as a leading component manufacturer and an integrated intelligent mobility platform provider. The acquisitions enhance the company's manufacturing footprint in South India and contribute to its long-term corporate aspiration: achieving Group revenues of ₹ 50,000 crore by 2030 while strengthening its standing within the automotive sector.GABRIEL Stock Price Movement
Gabriel India Limited shareholders enjoyed a robust Tuesday as the stock gained 8.02%, settling at ₹1488.5. The equity managed to climb close to its yearly high, with the stock hitting an intraday peak of ₹1519.9 amid trading activity involving 2.66 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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