Gabriel India (505714) Investor Update summary

Strategic transformation and scheme of arrangement

• Board approved a composite scheme to realign the corporate structure, aiming to unlock synergies and enhance competitiveness.

• Gabriel will serve as the group's growth platform, targeting ₹50,000 crore revenue by 2030 and evolving into a diversified mobility solutions provider.

• The scheme consolidates mature ventures under Gabriel, enhancing scale without additional debt and focusing on profitable growth and higher returns.

• Leadership aims to streamline the group structure and position the company as a growth engine, transitioning from a single-product focus to a multi-product portfolio including sunroofs, brake fluids, coolants, DEF, adhesives, and drivetrain components.

• Equity holdings in key JVs expand presence in drivetrain, BIW, NVH, and synchronizer rings, enhancing global OEM partnerships and aftermarket reach.

Transaction structure and entities involved

• Four entities—Anchemco, Dana Anand, Henkel Anand, and Anand CY Myutec—will be consolidated through mergers and demergers, subject to regulatory approvals over 10-12 months.

• The scheme involves merging Anchemco into Asia Investments Pvt Ltd (AIPL), then demerging AIPL's business and investments into Gabriel.

• Gabriel will acquire 25.1% in Dana Anand, 49% in Henkel Anand, and 76% in ACYM, with Anchemco merging directly.

• Gabriel will issue shares to AIPL shareholders as consideration, with the scheme expected to be effective in 10-12 months pending regulatory approvals.

• Post-transaction, Gabriel will directly hold significant stakes in Dana Anand, Henkel Anand, and ACYM, consolidating automotive component businesses.

Strategic rationale and expected benefits

• The new structure aims to simplify the group, expand the product portfolio, and strengthen aftermarket and OEM relationships.

• Diversifies product portfolio, reducing concentration risk and enabling entry into new automotive segments.

• Facilitates direct collaboration with foreign partners for technology and investment, and achieves operational synergies.

• Expands customer base, strengthens aftermarket presence, and enhances ability to raise funds for future growth.

• Immediate synergies are expected in sales and cost, especially leveraging Gabriel's strong OEM and aftermarket networks.