Dormer Pramet to acquire Miranda Tools to strengthen market position

August 1, 2020 12:11 pm

The acquisition enhances Dormer Pramet’s production capabilities with a proven manufacturing platform and further strengthens our round tools offer for the general engineering, automotive component manufacturing and MRO industries.
Gautam Ahuja, Managing Director, Dormer Pramet India

Dormer Pramet, a global manufacturer and supplier of tools for the metal cutting industry, has agreed to acquire the business of India-based Miranda Tools. The acquisition strengthens the company’s position in the Indian and wider Asian markets, informs Gautam Ahuja, Managing Director, Dormer Pramet India.

Could you let us know more about Dormer Pramet’s proposed acquisition of Miranda Tools?
Dormer Pramet has agreed to acquire the business of India-based Miranda Tools, a manufacturer of High-Speed Steel (HSS) and solid carbide cutting tools, subject to conditions. With a corporate base in Mumbai and several manufacturing facilities in the state of Gujarat, Miranda is one of the leading domestic cutting tool brands.

The acquisition enhances Dormer Pramet’s production capabilities with a proven manufacturing platform and further strengthens our round tools offer for the general engineering, automotive component manufacturing and MRO industries.

What does the acquisition mean for both companies and their customers?
We see a lot of commonalities between the two companies, with an established distribution network, long-standing customer partnerships, and a focus on product quality and service. The addition of their significant expertise in India will further enhance Dormer Pramet’s position as a leading global supplier of HSS solid round tools – an area of the market where we continue to expand.

At present, we see this is business usual for Miranda Tools and ourselves. I would like to reassure customers that the proposed acquisition will not impact on their ability to receive the products they need in the day-to-day running of their business.

How significant is this acquisition as far as your global business is concerned?
The acquisition strengthens our position in the Indian and wider Asian markets, supporting a vast array of small to medium-sized workshops, which rely heavily on HSS cutting tools. By expanding our manufacturing footprint to encompass North and South America, Europe and now Asia, we can better serve these markets.

How does the company see its growth trajectory from here?
Sales in 2020 for most companies will be quite changeable, with a good start, followed by a drop in April, and then a gradual recovery. We hope that during the festival time in October to November, the economy should be back to its pre-lockdown figures, although there may be an overall shift in the buying pattern of consumers, due to changing needs.”

Now that the Indian government has raised the FDI limit in the defence manufacturing from 49% to 74% under automatic route, how do you see the opportunities for domestic manufacturers?
We see 2021 with a lot of promise, and that growth rates aim to be one of the highest in our recent past. The Indian manufacturing industry should be moving at a good pace by then, and the world will be looking at our country as a major manufacturing destination.

Which are the allied industries will drive this movement and get benefitted?
The cutting tool industry in India is mainly dependent on the automotive industry, and less on others, such as general engineering, aerospace, energy, defence and railways. The automotive industry was on a high in 2018, but since then it has seen a negative growth. Now in 2020 and, following the recent lockdown, the industry and economy have taken a significant blow. However, we see some green shoots after the pandemic, with the tractor and cycling industry achieving high growth rates in June 2020.

Brief us on the preparedness of Indian manufacturing sector in this context.
Our indexable brand Pramet continues to perform well in the market, thanks to the dedication and hard work of our whole team. We were growing at a very good pace at the start of this year and then the sudden COVID-19 lockdown threw everything out of gear. However, we are positive about the market in the future, and the Hon’ble Prime Minister’s push towards Atmanirbharta will give a boost to the industry and economy in India.

What opportunities can the move bring for machine tools and cutting tools industry?
The cutting tool industry is starting to come back to its pre-lockdown numbers, though it may take another couple of months to fully return. We hope the festive season will be the turning point and the cutting tool industry should be in positive growth rate by the end of 2020.