GMM Pfaudler’s German Subsidiary Acquires 51% Stake German Company

On December 20, 2024, Pfaudler GmbH, the German subsidiary of GMM Pfaudler Ltd., entered into an Investment and Shareholders’ Agreement (ISHA) to acquire a 51% stake in a Polish limited liability company. This joint venture is set to establish a new engineering and manufacturing facility in Poland, strengthening GMM Pfaudler’s manufacturing in Europe​.

Investment and Funding

The total planned investment for this facility amounts to PLN 12.2 million (approximately ₹25.3 crore), which will be financed entirely through internal accruals. Out of this, PLN 11 million will be allocated for equity subscription, while PLN 1.2 million will be set aside as a transaction bonus for the joint venture partner​.

Focus on Quality Manufacturing

The Polish entity will specialize in producing stainless-steel equipment for the pharmaceutical and food industries. This addition is GMM Pfaudler’s strategy to work on its global manufacturing and provide tailored solutions to key sectors​.

Operational Objectives

The new facility is under GMM Pfaudler’s broader plan to expand its operations across Europe. With 20 manufacturing facilities, supported by a sales and service network in four continents, the company aims to strengthen its offerings in corrosion-resistant technologies and equipment for applications across the chemical, pharmaceutical, food, and energy sectors​.

The acquisition process and establishment of the facility are expected to conclude within three months from the ISHA’s execution date​.

Market Performance

On the announcement day, shares of GMM Pfaudler were trading at ₹1,212.9. However, at 1:00 PM today, shares of GMM Pfaudler were trading at ₹1,206.05, down ₹13.05 (1.07%) for the day, showing a 24.28% decline year-to-date, a 24.25% drop over the past year, and a 9% fall in the last six months.

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