Piramal Finance, part of the Piramal Enterprises group, is investing Rs 565 crore on two entities in auto component sector.
Piramal Finance, part of the Piramal Enterprises group, is investing Rs 565 crore on two entities in auto component sector.
The company has invested Rs 275 crore in RSB Group and Rs 290 crore in Indoshell Mould Ltd, Piramal Enterprises said in a statement.
The investments were made through the Corporate Finance Group (CFG), erstwhile Structured Finance Group of Piramal Finance Ltd, it added.
RSB is into manufacturing of propeller shafts, gears, axles and machined products for engine components and construction equipment aggregates. It supplies to commercial vehicles, passenger cars, construction and farm equipment manufacturers.
It has 11 manufacturing facilities spread across major auto clusters, the statement added.
Indoshell, on the other hand, focuses on two-wheeler segment supplying engine cylinder blocks to a well-diversified customer base, the company said.
Commenting on the development, Piramal Finance Managing Director Khushru Jijina said: "The auto component space has been on our radar as a focus area for a while now...We look forward to more such transactions as we further scale up our investment focus towards this sector."
Both RSB and Indoshell have long standing relationships with major OEMs and command higher wallet share of their respective customer set, Jijina added.
RSB Group Chairman and MD RK Behera said the investment has provided the company with a long-term solution to its capital requirements.
Similarly, Indoshell Mould MD Balaji Jagadeesan said: "This tranche of funding from the Piramal Group has helped us solve a cash flow mismatch situation and further enables us to meet the incremental demand from two wheeler OEMs." In addition, the company is now well placed to cater to export clients in commercial vehicle segment through our the new export-oriented facility situated near Coimbatore, he added.
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
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