Mumbai: Gemsons Precision Engineering’s promoters are looking to sell a controlling stake in a deal that may value the company at about ₹1,000-1,200 crore, three people familiar with the matter said.
The deal has been launched by the company, and initial feelers have been sent to private equity firms, including EQT, Carlyle, Blackstone and ChrysCapital, the people said, adding that the idea is to enable a platform creation and expand capabilities. The transaction is likely to involve an 80-100% stake sale by the promoter entity, they said.
Platform refers to the concept of private equity firms acquiring a primary company to serve as the anchor for making subsequent bolt-on acquisitions to scale rapidly.
All the people spoke on the condition of anonymity, as the discussions are private. EQT, ChrysCapital and Carlyle declined to comment, while Gemsons and Blackstone did not respond to Mint’s requests for a comment.
Broadly, precision engineering—spanning aerospace components, gas turbines, nuclear-grade parts and submarine propulsion systems—sits at the intersection of national security and industrial capability.
Sector growth
The $80 billion global market is growing at a 15–20% CAGR, with long qualification cycles of 18–36 months, high switching costs and stringent certifications creating durable barriers to entry, Avataar Ventures said in a report earlier this year. Once qualified, suppliers can remain embedded in customer supply chains for decades, it noted.
Established in 1982 by the late Thomas Pereira, Mumbai-based Gemsons was founded as a manufacturing and job-shop for subcontract machining. The company, which is now led by the second generation of the family, has transformed into a modern machine shop certified for quality management systems such as ISO 9001 and has a aerospace cell certified for AS 9100: D.
With nearly four decades of experience in CNC manufacturing and assembly, Gemsons has served General Electric, Siemens, Emerson Electric, Johnson Controls, Tata Consultancy Services, Danaher Corp., ABB, and many other global engineering companies, according to its official website.
The company has manufactured more than 15,000 critical components and assemblies across several industries like aerospace, oil & gas, power & energy, fire & security, high voltage, fasteners, healthcare, water treatment, instrumentation, turbomachinery, semiconductors and many more.
It competes with top-tier precision CNC machining and contract manufacturing companies such as Azad Engineering, Sansera Engineering, Bharat Forge, Maini Precision Products, Aequs, MTAR Technologies and Sundram Fasteners, among others, as per online reports.
In FY25, the company reported an operating revenue of ₹170.8 crore as compared to ₹136.2 crore, a year earlier. Its net profit widened to ₹27.4 crore from ₹20.1 crore in FY24, according to filings sourced by Tofler from the ministry of corporate affairs.