Apar Industries Expands Global Footprint with Chinese Acquisition

RMB 24.85 million total consideration for a 70% stake.
Zero turnover for the target company in the last two fiscal years.

Reader Takeaway: Strategic geographic expansion for conductor manufacturing; limited near-term financial impact as the target is currently non-operating.

What just happened

Apar Industries Limited has announced that its wholly-owned subsidiary, Petroleum Specialities Pte Ltd (PSPL), signed an agreement on October 30, 2026, to acquire a 70% equity interest in Hebei Jinghuan Cable Co. Ltd, based in China. The deal is valued at RMB 24.85 million, based on a price-to-book ratio of 1x, and will be settled in cash.

Payment Structure

PSPL will pay 30% of the purchase price within 7 business days of the closing date. The remaining 70% will be held in an escrow account, contingent upon the seller fulfilling specific agreed conditions. Additionally, PSPL has secured a call option to acquire the remaining 30% of the company after five years, with the price set by a third-party valuation.

Strategic Rationale

The acquisition is designed to diversify Apar Industries’ manufacturing capabilities for aluminium overhead conductors. The company plans to transform the target entity into an export-focused operation, supporting its goal of strengthening its position in the global power transmission and distribution market.

Risks to watch

The target company is currently non-operating with nil turnover for FY24 and FY25, meaning its value is primarily tied to its liquid assets (95% bank balances) and machinery. The success of the venture depends on successfully operationalizing the site and navigating international regulatory requirements, including compliance with India's FEMA and China's State Administration of Foreign Exchange (SAFE).