Global investment firm Carlyle has acquired majority stake in an entity formed by Indian auto parts companies Highway Industries and Roop Automotives.
The investment, sourced from funds affiliated with Carlyle Asia Partners, marks Carlyle’s entry into India’s auto components market.
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Highway Industries is engaged in manufacturing “powertrain subsystems and components”, while Roop Automotives specialises in producing “steering yokes” and exports them to Europe and North America.
Both Highway and Roop produce precision-machined components, steering system assemblies, and powertrain parts for electric, hybrid, and ICE vehicles.
Over 30 years, the firms have developed a portfolio of more than 1,500 products, serving 55 customers across 17 countries with 12 manufacturing plants and 14 international warehouses.
Carlyle plans to expand its investments in auto components and add complementary assets to the Highway-Roop platform.
The founders of Highway and Roop, however, will retain stakes in the platform.
Carlyle aims to optimise synergies between the two companies, enhancing operational efficiencies and expanding capabilities.
Carlyle India Advisors managing director and head Amit Jain said: “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.
“In our view, this provides a large-scale opportunity for the Platform. We believe creating scale with consolidation will enable investments in technology, talent and systems, which will allow the Platform to deliver an enhanced value proposition for its customers.
“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.”
Oswal will assume the role of non-executive chairperson for the Platform Entity.
Advisory services for the transaction are provided by KPMG and Trilegal for Carlyle, with Singhi Advisors and KPMG advising Highway and Roop’s shareholders.
