Nupur Recycling Ltd., a leader in metal scrap processing and recycling, based in New Delhi, has successfully acquired Tycod Autotech Pvt. Ltd., a manufacturer of high-pressure die-cast and machined aluminium alloy components for automotive applications, which is located in Haryana. The company sees this move as a key part of its strategy to enhance its operations and integrate further into the market.
What is the deal about?
The recycling company has officially announced that it has acquired a manufacturer of aluminium alloys and components in an all-cash deal worth INR 240 million or USD 2.7 million. According to the firm, a company that recycles and produces nonferrous metals, this acquisition is a key move in their plan to enhance their operations. They aim to shift from just processing scrap to actually manufacturing aluminium alloys and precision-engineered components for the automotive industry.
Post acquisition, the company is gearing up to modernise Tycod's production facilities. This includes bringing in high-pressure die casting, vertical machining and Computer Numerical Control (CNC) equipment to enhance their operations. The company has further announced that the upgrades are designed to improve production capacity and attract more OEM partnerships in the near future.
Rajesh Gupta, managing director of Nupur Recycling, stated, "This acquisition is a strategic forward integration that allows us to capture greater value from our recycling operations."
The company also describes Tycod Autotech as a thriving business, operating out of a spacious 90,000-square-foot facility situated on a five-acre plot within a larger 200-acre industrial park. This facility is currently focused on producing engine components for Tata's commercial vehicles. Also, it supplies various other OEMs, such as Tata Motors, Sundaram Fasteners and Interpump Group, as reported by the firm.
Grab more on global recycled aluminium from the report “World Recycled ALuminium Market Analysis Industry forecast to 2032”
Daksh Maheshwari from Tycod Autotech commented, "Joining hands with NRL has accelerated our growth trajectory. With a reliable raw material supply and new investments in advanced machinery, we are now poised to become a leading Tier-1 supplier to OEMs."
Tycod currently has a team of about 175 employees and the recycling company is working for even more growth. Right now, they're supplying Tycod with over 100 metric tons of aluminium alloy ingots each month, which helps maintain high quality and timely deliveries for their important OEM clients. Looking to the future, the firm plans to ramp up that supply to 300 tonnes per month to support its in-house automotive component manufacturing by the 2026-2027 fiscal year.
Other collaborations
Beyond its Tycod operations, the firm is involved in trading and processing nonferrous scrap. This includes various shredded grades like zorba and zurik, along with shredded zinc and zinc die-cast scrap. The company sources and trades scrap materials from places like India, Europe, the United States and the United Arab Emirates.
The firm is taking a big step forward by branching out into aluminium extrusion manufacturing through its subsidiary, Nupur Extrusion. They've set aside an impressive INR 180 million or USD 2.1 million to build a brand-new facility in Sampla, Bahadurgarh, Haryana.
This plant is aiming to start the operations in the fiscal year 2025–26 by featuring two extrusion press machines, targeting an annual production capacity of 5,000 to 6,000 tonnes. This strategic move is all about keeping up with the growing demand for recycled aluminium products, particularly in the solar energy and construction sectors.
Also read: Nupur Recyclers to debut in aluminium extrusion manufacturing with INR 180 million investments
Responses
