Belrise Merger Strengthens Core Manufacturing Platform

MUMBAI:
 Belrise Industries Limited (BIL), one of India’s leading integrated automotive component manufacturers, is accelerating its transformation into a scaled, diversified precision-engineering company through the merger of two profitable group companies having strong operating metrics, Badve Autocomps and Eximius Infra Tech with Belrise Industries Limited, significantly strengthening its operating platform, group structure and long-term growth visibility. The company is also expanding rapidly in the aerospace & defense division.

Badve Autocomps reported revenues of ₹1,421 crore, EBITDA of ₹187 crore with operating margins of 13.2%, and a PAT of ₹79 crore, while Eximius Infra Tech recorded revenues of ₹696 crore, EBITDA of ₹85 crore with operating margins of 12.2%, and a PAT of ₹33 crore. Together, the merger is expected to add approximately ₹1,000 crore in revenue (post related party eliminations) to the consolidated entity. Additionally, Belrise marks its entry into global aerospace supply chains with its first international acquisition, Europe-based SDM. The announcements are aligned to the company’s objective of building a global aerospace supply chain.

Commenting on the developments, Shrikant Badve, Managing Director of Belrise Industries Limited, said, “The merger of Badve Autocomps and Eximius Infra Tech with Belrise Industries is a defining step in simplifying our group structure and building a larger, more integrated manufacturing platform, giving us the scale and capability to engage OEMs more deeply and move further up the value chain as a system-level supplier. This consolidation was a key commitment articulated in our DRHP at the time of our IPO, and with this merger, we have delivered on that promise.”

Executed at close to book value, the merger implies a P/E of 8.3x for the merged entities on FY 25 basis, compared to 30.9x for the listed entity on a TTM basis, resulting in immediate EPS accretion for Belrise shareholders. EY acted as the independent registered valuer for the transaction, while JM Financial provided the fairness of opinion. The consolidation is also expected to materially reduce related-party transactions by approximately ₹1,152 crore.

Post-merger, Belrise will emerge as one of the largest players in India’s two-wheeler plastic components segment, with an estimated market share of around 25%.
The combined platform significantly enhances Belrise’s ability to increase content per vehicle through engineered plastic components and integrated system offerings, with content per vehicle expected to rise by over ₹3,000 in 2W, or approximately 20%.
The merger is also expected to deepen wallet share among existing OEM customers by 30% and improve customer stickiness.
Around 34% of incremental revenue post-merger are expected to come from the passenger and commercial vehicle segments, supporting diversification beyond two-wheelers. 

Alongside the merger, Belrise is also scaling its presence in the defence and aerospace sector. The company has completed its first-ever international acquisition in the aerospace segment through the purchase of SDM, a Europe-based manufacturer specializing in high-precision machined components for aero-structures, aero-engines and robotics. SDM supplies to some of the world’s leading aerospace OEMs, including the largest global commercial aircraft manufacturer and a leading French fighter aircraft OEM, providing Belrise direct entry into global aerospace supply chains. SDM is expected to generate revenues of approximately €3–4 million in FY27, forming a base for Belrise’s longer-term aerospace ambitions.

Belrise has also entered a strategic collaboration with Israel-based Plasan Sasa to localise advanced armoured vehicle technologies and the Autonomous Electric Mission Module (ATEMM) in India, with initial assembly planned domestically and a pathway into Plasan’s global manufacturing ecosystem.

Commenting on the expansion, Swastid Badve, Chief of Staff to the Managing Director, Belrise Industries Limited, said, “The acquisition of SDM represents a critical inflection point in Belrise’s expansion into high-precision, safety-critical aerospace manufacturing. SDM’s capabilities and its presence in global aerospace supply chains provide us immediate access to international programmes and a strong foundation to build an export-oriented aerospace platform from India. Our collaboration with Plasan Sasa further complements this strategy as we selectively scale our presence in defence applications through localisation and advanced manufacturing.”