Pavna Industries Advances Equity Investment in Pavna SMC Private Limited and Announces Hosur Plant Expansion

Pavna Industries Limited has detailed new investment and expansion plans after its Board meeting on January 28, 2026. Directors cleared a fresh equity infusion into subsidiary Pavna SMC Private Limited and reviewed progress on a new manufacturing facility at Hosur, Tamil Nadu. Both steps are positioned as part of a broader capacity build-out for the automotive sector in India.

The Board approved an equity investment of Rs 4 lakh in Pavna SMC Private Limited. Pavna Industries will subscribe to 40,000 equity shares, each with a face value of Rs 10. Once this subscription is completed, Pavna Industries will hold 80% of the subsidiary’s equity, while Smartchip Microelectronics Corp. will continue to own the remaining 20% stake.

The company expects the share acquisition in Pavna SMC Private Limited to be completed on or before March 31, 2026. Pavna Industries stated that this transaction does not need any regulatory or governmental approvals. The investment is structured as an internal strategic move, aimed at strengthening control over the subsidiary’s planned role in the automotive and allied sectors.

Pavna SMC Private Limited was incorporated in November 2025 and is focused on the automobile segment. The subsidiary intends to manufacture electronic components for both electric vehicle applications and internal combustion engine platforms. In addition, Pavna SMC plans to supply electronic parts to other industries, including medical equipment, aerospace systems, and residential hardware products.

Alongside the equity investment, Pavna Industries has highlighted the development of its new manufacturing plant at Hosur in Tamil Nadu. The facility recently held an official opening ceremony, which the company described as the start of a fresh phase of manufacturing expansion. The plant is expected to help meet changing demand patterns across India’s automotive sector.

The Hosur unit is located close to several major original equipment manufacturers in southern India. Pavna Industries plans to focus the facility initially on supply of critical components to these OEM customers. The first phase of the project involves a planned capital outlay of Rs 50 crores, with commercial operations targeted to commence later in 2026.

Pavna Industries automotive sector plans and Hosur facility outlook

Managing Director Mr. Swapnil Jain commented on the role of the new plant in the group’s strategy. Mr. Jain 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."

Details of Pavna Industries’ shareholding in Pavna SMC Private Limited and its Hosur capex are summarised below for reference by investors and analysts assessing the group’s exposure to the automotive sector.

Company / Project	Instrument / Phase	Amount (Rs)	Stake / Status	Key Date
Pavna SMC Private Limited	Equity shares (40,000 shares, Rs 10 face value)	4,00,000	80% Pavna Industries, 20% Smartchip Microelectronics Corp.	Completion on or before March 31, 2026
Hosur manufacturing plant	Phase I project outlay	50,00,00,000	New facility near southern India OEMs	Operations expected later in 2026

Pavna Industries Limited was originally incorporated on April 19, 1994, under the name Pavna Locks Limited. Over time, the company has diversified from its earlier product profile into a wider automotive portfolio. The group now supplies a broad range of automotive parts to established OEM customers across multiple vehicle categories in India.

The company’s products serve passenger vehicles, two-wheelers, three-wheelers, heavy commercial vehicles, light commercial vehicles, and off-road vehicles. Pavna Industries positions its components as reliable and of consistent quality for OEM usage. The new equity investment in Pavna SMC and the Hosur plant development together indicate a continued focus on deepening participation in the automotive sector value chain.