Unimech Aerospace and Manufacturing Ltd is set to acquire a majority stake in Hobel Bellows Private Limited for up to ₹450 crore. Hobel Bellows, a maker of metallic bellows and flexible tubing assemblies with ₹100.99 crore turnover in FY24, will become part of Unimech. This deal aims to upgrade Unimech’s capabilities from precision components to engineered assemblies, incorporating advanced manufacturing technologies.
The deal will integrate Hobel Bellows Co, a specialist in metallic bellows and flexible tubing assemblies, into Unimech’s operations. Hobel Bellows Co reported a turnover of ₹100.99 crore in the fiscal year 2024.
The acquisition involves a newly established entity, Hobel Bellows Private Limited. Unimech will own 24% of this new company, with its subsidiary Innomech Aerospace Toolings Pvt Ltd holding the remaining 76%. Hobel Bellows Private Limited will then acquire 99.99% of Hobel Bellows Co, the operational business. This structure effectively places the acquired business under Unimech’s control.
This move marks a significant strategic shift for Unimech, aiming to elevate its position from manufacturing precision machined components to producing more complex engineered assemblies. The acquisition grants Unimech direct access to advanced manufacturing technologies such as hydroforming, thin-wall metal forming, and precision TIG welding. Hobel Bellows Co’s expertise aligns closely with Unimech’s existing focus on the aerospace and energy sectors.
The integration is expected to enhance Unimech’s product portfolio by adding engineered assemblies. It brings new proprietary manufacturing techniques into the company. This transition positions Unimech to offer higher-value solutions within the aerospace and defence supply chain, potentially diversifying revenue streams and improving profit margins.
Unimech’s competitors, including MTAR Technologies and Paras Defence and Space Technologies, are also active in precision manufacturing for critical industries. This acquisition enables Unimech to compete more directly in the engineered assembly’s market, an area where some rivals may already have a stronger presence.
Hobel Bellows Co generated ₹100.99 crore in revenue in FY24. Looking ahead, the company projects a turnover of ₹117.25 crore for FY25 and ₹123.74 crore for FY26.
The acquisition is expected to be finalised within the next seven days. Investors will be watching Hobel Bellows Co’s performance post-acquisition, its contribution to Unimech’s financials, and updates on integration progress. Management’s focus on future expansion plans leveraging these new capabilities and details on the funding for the ₹450 crore deal will also be key.
