PPAP Automotive surges 14% on advanced sealing technology partnership with Hutchinson

Shares of PPAP Automotive Ltd surged nearly 14% on Thursday morning, June 11, after the company announced a technology partnership with France-based Hutchinson to manufacture advanced body sealing systems for passenger vehicles in India. This is the biggest single-day gain for the stock since November 2024.

Under the agreement, PPAP will gain access to Hutchinson's technology, licensed know-how, engineering expertise and technical support to develop and commercialise advanced automotive sealing solutions in the domestic market.

In an exchange filing on Wednesday, PAPP said that the partnership grants it an exclusive licence for India to manufacture, market and sell specified body sealing products using Hutchinson's technology and designs.

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Abhishek Jain, Managing Director and CEO of PPAP Automotive, said the partnership would help expand the company's capabilities in advanced automotive solutions.

"By combining Hutchinson's global expertise with PPAP's strong manufacturing presence and customer relationships in India, we aim to deliver future-ready, innovative, high-quality body-sealing solutions that meet the evolving requirements of automotive OEMs," Jain said.

Frédéric Le Du, Senior Vice President Asia at Hutchinson, said the partnership would combine PPAP's local manufacturing footprint with Hutchinson's expertise in high-performance engineering systems to support the evolving needs of India's passenger vehicle industry.

The company said production will be carried out through its existing manufacturing facilities across India, enabling localisation and scalability while catering to the requirements of both domestic and global automotive original equipment manufacturers (OEMs).

The collaboration is expected to strengthen PPAP's product portfolio in the automotive sealing segment, enhance its technological capabilities and expand its presence in the passenger vehicle market. The company also expects the partnership to increase value-added content per vehicle and deepen engagement with OEMs across both conventional and next-generation mobility platforms.

Hutchinson, which generated revenue of around €5 billion in 2025 and operates across 26 countries, is a global supplier of sealing systems and other engineering solutions for the automotive, aerospace and industrial sectors. It is also actively involved in technologies supporting electrification and sustainable mobility.

The agreement, effective from April 1, 2026, also provides for technology transfer fees, technical support payments and royalty payments linked to the use of licensed intellectual property and know-how.

PPAP currently supplies automotive components to major vehicle manufacturers, including Maruti Suzuki, Hyundai Motor India, Kia India, Tata Motors, Mahindra & Mahindra, Honda Cars India and Toyota Kirloskar Motor.

Shares of PPAP Automotive are trading 14.2% higher on Thursday at ₹234.96. With this move, the stock has turned positive for the year but is still down from its 52-week high level of ₹294.