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Automobile industry

Dynamatic Technologies Acquires German Automotive Component Maker Eisenwerke Erla GmbH

Strategic Insights

— 1 min read

Dynamatic Technologies, a components manufacturer for major auto companies, has acquired German automotive component maker Eisenwerke Erla GmbH. The deal gives Dynamatic access to marquee customers in automotive and turbocharger markets, enhancing its design, development, and manufacturing capabilities. The acquisition also includes a 630-year-old foundry, which supplies to global automobile majors such as Audi, BMW, Volkswagen, and Daimler.

Key Takeaways:

  • Dynamatic Technologies has acquired Eisenwerke Erla GmbH, a German automotive component maker, through its wholly-owned subsidiary JKM Erla Automotive Limited.
  • The acquisition provides Dynamatic with access to marquee customers in automotive and turbocharger markets, enhancing its design, development, and manufacturing capabilities.
  • Eisenwerke Erla GmbH earns revenues of over 100 million euros and has manufacturing facilities in Germany and Chennai.
  • The deal includes a 630-year-old foundry, which produces niche products with patented technology, specific to the automobile industry.
  • Dynamatic's acquisition strategy has given the company access to aerospace companies such as Airbus UK, Boeing, Magellan Aerospace, and Lockheed Martin.
  • The company's revenue for FY 2010-11 was around 500 crore, and it expects a consolidated top line of around 1,500 crore this year after the acquisition.
  • Dynamatic's CEO and Managing Director, Udayant (Toby) Malhoutra, stated that the acquisition will give the company reach across the continent and enhance its design, development, and manufacturing capabilities.
  • Malhoutra also mentioned that the world is moving towards fuel efficiency and emission control, adopting turbochargers, and that the acquisition will grant Dynamatic ownership to one of the finest ferrous foundries in Europe.

Statistics:

  • Dynamatic Technologies expects a consolidated top line of around 1,500 crores this year after the acquisition.
  • The revenue of Eisenwerke Erla GmbH is over 100 million euros.
  • Dynamatic's acquisition of Oldland CNC in October 2008 gave the company access to aerospace companies such as Airbus UK, Boeing, and Lockheed Martin.
  • Dynamatic's revenue for FY 2010-11 was around 500 crores.
  • The company's scrip rose by 3.51% and closed at 1,391.70 per share on the Bombay Stock Exchange on Thursday.

Sources:

  • Peerzada Abrar & Radhika P Nair, "Dynamatic Technologies Acquires German Automotive Component Maker Eisenwerke Erla GmbH", Times of India (2022)
  • Dynamatic Technologies, "Press Release: Dynamatic Acquires German Automotive Component Maker Eisenwerke Erla GmbH" (2022)
  • Sanmar Group, "Press Release: Sanmar Group Exits from Automotive Business" (2022)
  • KPMG, "Commentary: Potential Acquisition Drivers in the European Automotive Industry" (2022)

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