Auto Stock Takes Big EV Bet: Board Approves Investment In New Auto Electronics Subsidiary

At a meeting on January 28, 2026, Pavna Industries Limited's Board of Directors authorized a number of important corporate activities, the company reported to the exchanges. On the strategic front, Pavna Industries authorized a Rs 4 lakh equity investment in its subsidiary, Pavna SMC Private Limited, by subscribing to 40,000 equity shares with a face value of Rs 10 apiece. With this investment, Pavna Industries will own an 80% stake in the subsidiary, with Smartchip Microelectronics Corp. maintaining the remaining 20%.

Founded in November 2025, Pavna SMC Private Limited works in the automobile sector and plans on manufacturing electronic components for electric vehicle (EV) and internal combustion engine (ICE) applications and components for other industries like medical equipment, aerospace, and residential hardware.

The company stated that the acquisition of shares in Pavna SMC Private Limited will be completed on or before March 31, 2026, and no regulatory or governmental approvals are required for the transaction.

In Hosur, Tamil Nadu, Pavna Industries Limited recently held the official opening ceremony for its brand-new, cutting-edge manufacturing plant. This event, which signifies the start of a new phase of manufacturing expansion aimed at developing advanced capabilities, strengthening regional presence, and meeting the changing demands of India's automotive sector, is a critical turning point in Pavna's growth path.

An important turning point in Pavna's long-term growth strategy is the Hosur facility, which is well situated near a number of major original equipment manufacturers (OEMs) in southern India. The plant will initially focus on supplying critical components. The first phase of the Hosur project involves an investment of Rs 50 crores, with operations expected to commence later in 2026.

Mr. Swapnil Jain, Managing Director, Pavna Industries Ltd. said: "The Hosur facility underscores our strategic intent to be closer to our customers, drive operational excellence, and reliably meet the evolving needs of the automotive industry. Our investment and expansion in Hosur will bolster production capability, strengthen logistics efficiency, and contribute to local economic development. We now look forward to the swift completion of this facility and to commencing operations at the earliest possible timeframe."

On April 19, 1994, Pavna Industries Limited-previously known as Pavna Locks Limited-was established. The firm produces a broad range of dependable and superior automotive parts for reputable OEMs that cater to various vehicle categories, such as passenger vehicles, two-wheelers, three-wheelers, heavy and light commercial vehicles, and off-road vehicles.