Bangalore / Hosur, 9th July 2025: Wendt (India) Limited, a leading manufacturer and distributor of super-abrasive grinding and polishing solutions, has formally announced the incorporation of a wholly owned subsidiary in Germany.

The new entity, Wendt GmbH, was incorporated on 8th July 2025 in Tönisvorst, Germany. The development marks a significant milestone in Wendt India’s strategic roadmap to expand its presence in the European market and enhance service capabilities for its customer base across the region.

In a disclosure to BSE Limited and National Stock Exchange of India Limited (NSE) under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Wendt India stated that the Board of Directors had earlier, on 3rd March 2025, approved plans to establish the overseas subsidiary.

Background and Strategic Rationale

Wendt India has long been recognised as a technological leader in the manufacturing of super-abrasive grinding wheels, tools, and precision components. Its solutions cater to a wide range of industries, including automotive, engineering, cutting tools, and ceramics.

The company’s decision to set up a subsidiary in Germany is a deliberate strategic move to strengthen its position in the European market.

According to the company’s filing:

“The object and effect of this acquisition is to expand the Company’s business prospects in Europe.”

By incorporating a wholly owned subsidiary, Wendt India seeks to:

• Localise its sales and servicing operations closer to customers.

• Improve responsiveness for supply of machines, spare parts, and customer support.

• Build deeper relationships with European OEMs and end-users.

• Enhance its competitiveness in a mature and demanding industrial market.

Details of the New Entity: Wendt GmbH

The disclosure provides key details of the new subsidiary:

• Name: Wendt GmbH

• Date of Incorporation: 8th July 2025

• Location: Tönisvorst, Germany

• Authorised and Paid-up Capital: €0.55 million (approx. ₹5 crore)

• Industry: Sale and servicing of grinding and polishing machines, including spare parts and customer support.

Being newly incorporated, Wendt GmbH currently has no turnover to report, as commercial operations are yet to commence.

Ownership and Related Party Treatment

• Wendt India Limited will hold 100% shareholding in Wendt GmbH.

• While the incorporation is not a “related party transaction” at inception (since it is a newly formed subsidiary), from the date of incorporation onwards, Wendt GmbH will be treated as a related party for all regulatory and disclosure purposes under Indian accounting and SEBI rules.

Industry Context: Why Germany?

Germany is Europe’s largest industrial economy, with a highly advanced manufacturing sector, especially in automotive, machine tools, aerospace, and precision engineering—all sectors that rely on high-performance grinding and polishing solutions.

By creating a local presence, Wendt India is strategically positioning itself to:

• Serve existing European clients more effectively.

• Tap into new business opportunities with industrial customers.

• Offer faster after-sales service and spare parts supply, a key competitive differentiator.

Funding Details and Nature of Transaction

• Nature of Consideration: Cash subscription to equity.

• Cost of Acquisition: Initial subscription of €0.55 million (approx. ₹5 crore).

• Percentage of Shareholding Acquired: 100% (fully owned).

• Mode of Payment: Cash remittance from Wendt India to the newly formed German entity’s bank account.

Regulatory Approvals and Compliance

Wendt India confirmed in its disclosure that:

“No governmental or regulatory approvals were required for this acquisition.”

The company also noted compliance with:

• Regulation 30 of SEBI (LODR) Regulations, 2015.

• Schedule III disclosures under SEBI’s master circular (SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11th November 2024).

The disclosure includes Annexure details summarising the required regulatory fields such as nature of business, consideration, cost, and ownership structure.

Product and Business Scope of Wendt GmbH

As per the filing, Wendt GmbH will focus on:

• Distribution of grinding and polishing machines.

• Sale of abrasives and spare parts.

• Trade in industrial supplies of all kinds.

• Associated customer service and after-sales support.

This indicates a full-service European business unit, rather than just a sales office, suggesting Wendt India’s commitment to long-term investment in the region.

Promoter/Group Interests

• Wendt India clarified that there is no separate promoter or promoter group interest in the entity, except that it is now a 100% subsidiary (and thus automatically a related party).

• This ensures transparency, and confirms that the incorporation was done at arm’s length, with cash subscription funded by Wendt India Limited.

Timeline and Execution

• Earlier Board Approval: 3rd March 2025.

• Date of Incorporation: 8th July 2025.

• Disclosure to Exchanges: 9th July 2025.

The company’s adherence to planned timelines signals strong execution discipline.

Wendt India’s Broader Strategy

This move aligns with Wendt India’s larger strategy to:

• Strengthen global market reach beyond India and Asia.

• Support export sales with local European servicing.

• Compete effectively with global grinding technology players.

• Build sustainable revenue streams in developed markets.

The investment is modest (~€0.55 million) but significant for a niche industrial player targeting high-value engineering customers.

About Wendt (India) Limited

• Incorporated in 1980.

• Headquarters: Hosur, Tamil Nadu, India.

• Manufactures super-abrasive grinding wheels, machines, and precision components.

• Serves automotive, cutting tools, ceramics, and precision engineering industries.

• Listed on BSE (Code: 505412) and NSE (Symbol: WENDT).

• Registered Office: Bangalore, Karnataka.

Final Word

The incorporation of Wendt GmbH in Germany is a clear signal of Wendt India’s ambition to become a stronger, more global industrial solutions provider.

While the investment is moderate in financial terms, it represents a strategic leap for the company by establishing a direct foothold in Europe’s advanced manufacturing market.

As the new subsidiary becomes operational, stakeholders can expect improved customer access, faster service delivery, and expanded market share in one of the world’s most demanding industrial regions.

This is also a positive step for investors, highlighting Wendt India’s focus on sustainable, export-driven growth and prudent international expansion while maintaining strong regulatory transparency and governance.

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