Carlyle enters India’s auto parts market

Carlyle has acquired a controlling stake in India’s Highway Industries Ltd and Roop Automotives Ltd, effectively entering the country’s auto components market.

The global investment firm said on Thursday that it will consolidate the two auto component manufacturers to form a diversified global automobile components platform.

The investment is funded by Carlyle Asia Partners (CAP).

Highway and Roop are known for manufacturing forged and precision-machined components, steering system assemblies, and powertrain applications for electric, hybrid, and internal combustion engine vehicles.

The platform has 12 manufacturing plants, 14 international warehouses, and serves 55 customers in 17 countries, Carlyle said. It plans to grow its presence in the auto parts sector and integrate synergistic assets.

The founders of Highway and Roop will retain shares in the platform. With the acquisition, Carlyle plans to improve operational efficiencies and strengthen market capabilities.

“We believe India offers a tremendous opportunity in the advanced manufacturing sector, particularly in the auto components supply chain for both domestic and export markets. … We are excited to partner with Highway and Roop to build this platform. Carlyle is well-placed to accelerate the growth of the Platform by leveraging our worldwide network and investments in the automotive sector globally,” Amit Jain, managing director and head of Carlyle India Advisors, said in a statement.

Mohit Oswal, MD of Roop, will serve as non-executive chairperson of the platform’s board. Carlyle’s Mark Blaufuss and Kishore Saletore will join as board members.

KPMG, Trilegal, Kotak, and Deloitte advised Carlyle, while Singhi Advisors and KPMG provided financial advisory services to Highway and Roop shareholders.