Pavna Industries to Acquire 80% Stake in Pavna SMC; Enters EV Electronics Space
DSIJ Intelligence-1Categories: Mindshare, Trending
This newly incorporated entity is set to focus on manufacturing electronic components for both Internal Combustion Engine (ICE) and Electric Vehicle (EV) segments, alongside catering to the aerospace, medical, and commercial hardware industries.
Pavna Industries Ltd (NSE: PAVNAIND, BSE: 543915), a leading manufacturer of high-quality automotive components catering to diverse vehicle segments, including passenger vehicles, two-wheelers, three-wheelers, commercial vehicles, and off-road vehicles, has announced a strategic move to bolster its presence in the automotive electronics sector by approving an investment in its subsidiary, Pavna SMC Private Limited. In a Board meeting held on January 28, 2026, the company cleared the acquisition of an 80% stake for a cash consideration of Rs 4,00,000, with the transaction expected to conclude by March 31, 2026. This newly incorporated entity is set to focus on manufacturing electronic components for both Internal Combustion Engine (ICE) and Electric Vehicle (EV) segments, alongside catering to the Aerospace, medical, and commercial hardware industries.
In addition to this equity investment, the Board approved several key regulatory measures to ensure transparency and governance. These include the updating of the Related Party Transactions Policy and the initiation of a Postal Ballot process to seek shareholder consent for the upcoming special business. To oversee this process, Mr Shantanu Jain has been appointed as the Scrutinizer to manage the remote e-voting fairly. These steps reflect the company’s dual focus on expanding its high-tech manufacturing footprint while maintaining rigorous compliance with SEBI Listing Obligations.
Earlier, Pavna Industries celebrated the groundbreaking ceremony for its new state-of-the-art manufacturing facility in Hosur, Tamil Nadu, marking a pivotal milestone in the company’s expansion strategy. This ₹50 crore investment for the project's first phase is strategically positioned near key automotive OEMs in southern India to enhance regional presence and meet the evolving demands of the domestic auto industry. Aimed at building advanced capabilities for critical component supply, the facility is expected to commence operations later in 2026, signalling a significant leap forward in Pavna’s long-term growth and manufacturing capacity.
About the Company
Established on April 19, 1994, Pavna Industries Limited (formerly Pavna Locks Limited) boasts a 50-year legacy as a leader in the South Asian automotive sector. The company operates state-of-the-art manufacturing facilities in Aligarh, Aurangabad, and Pantnagar, strategically positioned to serve major OEMs across the passenger, commercial, and off-road vehicle segments. Their extensive product portfolio features high-quality components such as Ignition Switches, Fuel Tank Caps, Latches, Auto Locks, Switches, Oil Pumps, Throttle Bodies, Fuel Cocks, and Casting Components.
Pavna maintains a strong global footprint, exporting to the U.S.A., Italy, Sri Lanka, Indonesia, Sudan, and Bangladesh. The company’s commitment to innovation is driven by robust R&D and strategic partnerships like the Sunworld Moto Industrial Co joint venture. This excellence allows them to cater to prestigious clients, including Bajaj, Kawasaki, Honda, TVS, Mahindra, Escorts, Royal Enfield, Ashok Leyland, Mahindra Wheels, Eicher Motors, Tork Motors, Revolt, and Mahindra Electric.
As of December 2025, Pavna Industries Limited maintains a stable ownership structure with promoters holding a 61.50 per cent stake, FIIs—led by Forbes AMC with 3.94 per cent—owning 6.06 per cent, and public shareholders accounting for 32.79 per cent. With a market capitalisation exceeding Rs 200 crore, the shares have a PE of 60x, supported by an ROE of 5 per cent and an ROCE of 10 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.